Small-cap Multibagger stock Remsons Industries jumps 4% on this business update. Check details

Mumbai, June 30, 2025 — Shares of Remsons Industries Ltd, a small-cap multibagger stock, surged over 4% intraday on the BSE, buoyed by a significant business update that signals an ambitious step towards global market expansion and innovation-led growth. The counter, which has already delivered stellar returns over the past year, saw renewed buying interest after the company announced a new collaboration aimed at enhancing its product portfolio and global footprint.

Strategic Partnership Fuels Rally

The auto-component manufacturer announced a strategic technology alliance with a leading European firm specializing in cable control systems and advanced driver assistance technologies. According to the company’s stock exchange filing, the move is expected to bolster Remsons' product innovation in shift control systems and electric vehicle-compatible components.

“The collaboration aligns with our long-term goal of becoming a global Tier-1 supplier with a diversified product mix catering to next-gen mobility,” the management said in a statement. “We aim to capitalize on the growing EV ecosystem by leveraging this technology partnership.”

The development was met with optimism in the investor community, especially as the deal is projected to enhance both operational capabilities and export revenues.

Market Reaction and Trading Details

Following the announcement, Remsons Industries’ stock rose 4.12% to ₹570.25 on the BSE, from the previous close of ₹547.50. Trading volumes also saw a spike, with over 1.2 lakh shares changing hands, significantly higher than the 20-day average.

Market analysts noted that the recent uptick is a continuation of the stock’s robust performance — Remsons has gained nearly 160% over the last 12 months, emerging as a favorite among small-cap investors looking for long-term compounding stories.

Analyst Commentary

Market experts view the latest announcement as a long-term positive.

“This collaboration reflects management’s forward-thinking approach. By enhancing its R&D capabilities and expanding access to new geographies, Remsons is positioning itself as a global player in automotive cables and shifters,” said Rajiv Mehta, Research Head at YES Securities.

“The consistent margin improvement, expansion in export revenue, and growing focus on the EV segment support a strong rerating thesis,” added Mehta.

According to brokerage reports, Remsons’ revenue from exports has grown by 35% year-on-year, and its order book continues to remain healthy, driven by new client acquisitions in Europe and Asia-Pacific.

Financial Performance Snapshot

Remsons Industries reported revenue of ₹235 crore in FY24, marking a 28% increase over FY23. Net profit stood at ₹18.4 crore, reflecting a 32% YoY jump. The EBITDA margin also improved by 90 basis points, aided by better operating leverage and higher value-added product sales.

The company operates six manufacturing facilities across India and has been supplying key automotive components to marquee clients such as Maruti Suzuki, Tata Motors, Ashok Leyland, and several international OEMs.

Investor Outlook: Can the Momentum Sustain?

Despite the sharp rally in recent months, analysts remain positive about Remsons' medium-to-long-term growth story, though some advise caution on valuations.

“The valuation has run up quite a bit, but the fundamentals are catching up. Any meaningful correction should be seen as a buying opportunity for investors with a 2–3 year horizon,” said Anjali Deshmukh, an independent equity advisor.

From a technical perspective, the stock has maintained support above key moving averages, with RSI around 63, indicating it is not yet in overbought territory. The counter may test its 52-week high of ₹583 if the positive sentiment continues, traders suggested.

What Should Investors Do?

With its strategic focus on product innovation, rising exports, and strong client relationships, Remsons Industries is increasingly being viewed as a play on India's auto components export growth. The ongoing shift towards electrification in mobility also places the company at an advantageous juncture, especially as EVs demand high-precision mechanical systems, where Remsons specializes.

While the sharp rally may prompt short-term consolidation, long-term investors could benefit from the company’s consistent execution, favorable sector tailwinds, and expanding global presence.

Remsons Industries’ 4% jump in share price is more than just a market reaction—it is a reflection of investor confidence in the company’s evolving business strategy and its ability to stay ahead in a rapidly transforming automotive landscape. With innovation at its core and eyes set on global growth, Remsons is solidifying its place among India’s most promising small-cap stories.