Multibagger Small-Cap Stock Remsons Surges 17% on Order Win From North America

Mumbai, May 15, 2025 – Shares of Remsons Industries Ltd. (NSE: REMSONS), a lesser-known but rapidly rising name in the auto ancillary space, soared 17% in today’s trade after the company announced a significant order win from a prominent North American automotive client. The sudden spike has stirred excitement across Dalal Street, with many small-cap watchers calling it a potential multibagger in the making.

But what exactly is fueling this rally? And does Remsons have the legs to run further from here?

Let’s decode the order win, the company’s fundamentals, and why this stock might deserve a serious look from savvy investors.

Stock Performance at a Glance

Remsons shares opened strong and remained locked in an upward trajectory, closing the day at ₹298.20, up 17.3% from the previous close. This marks a fresh 52-week high and comes on the back of unusually high volumes.

Stock Snapshot (As of May 15, 2025):

• Current Price: ₹298.20

• 52-Week Low: ₹112.00

• 52-Week High: ₹298.20 (new)

• YTD Performance: +76%

• 1-Year Return: +138%

The rally isn’t a one-day affair. The stock has been climbing steadily over the last 12 months, supported by strong order wins, exports growth, and the company’s ongoing transformation story.

Order Win Details: North America Beckons

Remsons Industries informed exchanges today that it has secured a multi-million-dollar order from a reputed Tier-1 automotive components supplier in North America, spanning high-value cable assemblies for commercial vehicle platforms.

The order:

• Is valued at approx. $11 million (~₹91 crore) over the next 18 months.

• Marks the company’s largest export contract to date.

• Involves custom-designed mechanical control cables for new-age electric commercial vehicles.

• Will be fulfilled from its Gujarat facility, with production commencing Q3 FY26.

Management Commentary:

"This order is a validation of our product quality, innovation capabilities, and expanding global footprint. We see North America as a high-growth geography over the next few years," said Rishi Kajaria, Managing Director, Remsons Industries.

Who Is Remsons Industries?

Founded in 1971, Remsons Industries Ltd. is a small-cap player in the automotive component sector, known primarily for its control cables, gear shifters, pedal assemblies, and other mechanical parts used by 2-wheeler, 3-wheeler, passenger vehicle, and commercial vehicle OEMs.

Key Clients:

• Maruti Suzuki

• Bajaj Auto

• Hero MotoCorp

• TVS Motor

• Tata Motors

• Mahindra & Mahindra

• Export clients in Europe and now North America

With six manufacturing facilities across India and one in the UK, Remsons is fast emerging as a trusted global supplier, particularly in niche cable and shifter assemblies.

Financial Snapshot: Lean, Focused, and Growing

Here’s a quick look at how Remsons has performed financially over the last few quarters:

What stands out is the consistent improvement in profitability and return ratios despite being in a capital-intensive industry. The management has also focused on deleveraging, with a declining debt profile year-over-year.

Global Expansion Strategy: More Than Just India

Remsons has been actively scouting overseas markets in a bid to diversify its revenue mix. Export contribution currently stands at 21% of total sales and is projected to cross 30% by FY27, led by North America, Europe, and Southeast Asia.

The company has also recently:

• Set up an R&D hub for EV-specific components.

• Signed a technology-sharing agreement with a German cable systems major.

• Invested in automation and robotics in its Pune and Chennai plants.

These moves are positioning Remsons not just as a vendor, but as a co-developer in the EV supply chain—a significant upgrade in status.

What Analysts Are Saying

While Remsons isn't widely covered by large brokerages, boutique investment firms and small-cap analysts are bullish on its prospects.

• KR Choksey: “Remsons offers a rare blend of strong fundamentals and niche positioning in the EV value chain. We assign a fair value of ₹340 based on FY26 EPS of ₹15.”

• Nirmal Bang (Private Note): “This North American deal could be a game-changer, giving Remsons long-term revenue visibility and margin stability.”

• Individual Investors: Some social media analysts are comparing Remsons to what Suprajit Engineering was 10 years ago.

Technical View: Breakout on High Volume

Remsons broke out of a consolidation zone today with record volumes on both NSE and BSE.

Key Levels to Watch:

• Immediate Resistance: ₹310

• Support Levels: ₹260 and ₹225

• RSI (14-day): 71 – entering overbought zone

Technical indicators point to short-term bullishness, but overbought conditions may lead to brief pullbacks, which could be used for fresh entries by long-term investors.

Should You Buy, Hold, or Wait?

Here’s a simple investor guide based on your goals:

Buy If:

• You’re a long-term investor (2+ years).

• You believe in the EV-led growth of Indian auto ancillaries.

• You want small-cap exposure with export momentum.

Hold If:

• You already own from lower levels (~₹180–220).

• You’re waiting for FY25 results to confirm margin trends.

• You’re willing to ride out short-term volatility.

Wait or Book Profits If:

• You're uncomfortable with small-cap volatility.

• You expect broader market corrections in the near term.

• The rally looks too fast, too soon.

Risks to Watch

No investment is without its share of risks. Here’s what to keep in mind:

1. Client Concentration: Overdependence on a few OEMs may hurt if contracts are lost.

2. Execution Delays: Fulfilling export orders profitably depends on logistics and quality compliance.

3. Forex Risks: Rupee volatility can impact earnings.

4. Small-Cap Liquidity: Low float can lead to high volatility on both up and down days.

Final Word: A Hidden Gem or Just a Hot Trade?

The 17% surge in Remsons Industries today is not just speculative noise. It reflects a fundamental shift in the company’s visibility, capabilities, and growth trajectory. The North America order may very well be the inflection point that takes this humble small-cap from a domestic parts maker to a global auto tech player.

With a clean balance sheet, expanding margins, and international expansion in full throttle, Remsons is beginning to tick all the boxes of a classic small-cap multibagger.

But like all small-caps, timing and risk management will be crucial. Smart investors would do well to watch this one closely—not just for the momentum, but for the story it's quietly building behind the scenes.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a registered financial advisor before investing.