Lower costs of raw materials helped Wabco India shares rise to 10 weeks high

Shares of Wabco India Ltd., a top auto ancillary maker, rose to 10-week highs as the company reported a strong set on earnings for the first quarter owing to lower costs of raw materials such as steel and rubber.

Wabco, in whose parent billionaire investor Warren Buffett holds a stake, said its first quarter profit leapt 55 percent to 47.5 crore rupees from 30.6 crore rupees in the year ago quarter. Sales for April-to-June rose 19 percent to 385 crore rupees from 323 crore rupees in the year ago period.

As a consequence, Wabco rose 5.1 percent, or 274 rupees, to 5,681 rupees, its highest level since June 2nd, on the National Stock Exchange, where 18,500 shares changed hands in the first 45 minutes of trade compared with a 5-day average of 3,700 shares.

The market capitalisation of Wabco has jumped 67 percent in one year to 10,250 crore rupees as investors sought the safety of a multinational brand with low floating stock.

(Image credits: Indiatimes)