Brazil's Biggest Gun Manufacturer Credits Good Management To The Jump In Stock Value

But analyst say value increase is caused by expectations of a Bolsonaro win

Anaïs Fernandes
São Paulo

The jump of over 160% in the stock value of the biggest gun manufacturer in Brazil is explained by a turnaround in the company's management, says Salesio Nuhs, president of Taurus Forge.

However, analysts say that the company stock appreciation at the São Paulo Stock Exchange is caused by the market's expectation to Jair Bolsonaro (PSL) winning the presidential run. 

The candidate's praise for the Armed Forces and his proposal to reform Brazilian gun laws could increase industry demand.

Nuhs doesn't mention the political landscape as a reason for the increase in stock prices, merely saying that this is "an external factor with no interference from the company."

A man fires a Taurus Millennium 9mm handgun - REUTERS

Nuhs said over e-mail that Taurus is going through significant management changes in 2018, caused by a restructuring process started which focused on improving production, financial and sales processes.

"All these improvements, joined by a debt renegotiation, might have put Taurus in a better perspective," he said.

He added that the company had the best operational results since 2009.

But the company's debt amount still worries analysts. It reached R$ 805.7 million (US$ 216 million) in June, a 12.1% increase from last year.

Nuhs says former management teams were responsible for the debt amount.

Translated by NATASHA MADOV

Read the article in the original language