Shares of IFB Industries rose 5.5% in morning trade on June 7, a day after Europe-based financial services group Societe Generale bought 300,000 shares, or 0.74%, of the company.

The shares were purchased on June 6 at an average price of Rs 800 each through open-market trading.

IFB Industries manufactures household appliances, machine tools and auto parts.

Shares of the company were trading at Rs 824.20 on the National Stock Exchange at 10:13 am, up 2.64% from the previous close. The stock touched an intraday high of Rs 847.30 in the first hour of trading.

Trading volumes were also strong, as 2 lakh shares changed hands on the exchange, compared with a one-month daily average of 73,000 shares.

Besides Societe Generale, Japan India Life and Plutus Wealth Management are the major institutional investors holding stakes in the company.

The company also reported an 11.84% rise in revenue to Rs 994 crore in the fourth quarter. Net loss in the fourth quarter also narrowed to Rs 7.55 crore from Rs 28.52 crore in the same period of the previous fiscal.

Brokerage firm Centrum Broking sees the expansion of air conditioners and healthy growth in the washing machine segment as key revenue drivers for IFB Industries. However, the brokerage warned that achieving high single-digit profit margins will be a major challenge for the company, especially amid stiff competition.

Centrum Broking issued an “add” call on IFB Industries with a target price of Rs 875.

The stock is down 8.6% so far in 2023 but has returned 89.61% over the past three years.