New Orders Backs Stone India To Its Previous Track

Stone India LimitedStone India ascended 5.95% to Rs 188.90 on getting orders from Indian Railways for supplying 5 sets of static converters. This is a high value solid state product to be provided under partnership with SMA Technologies AG, Germany.

The scrip hit an intraday high of Rs 199.85 and an intraday low of Rs 180 during the day. On 29 August 2006, it touched a 52-week high of Rs 278.80 and a 52-week low of Rs 104.30 on 30 April 2007.

Stone India stock had climbed 18.31% within the last one month to 6 July 2007 against the Sensex’s come back of 5.48%. The scrip had outperformed the stock market over the last quarter, advancing 22.88% as compared to the Sensex’s growth of 16.40%.

The share price had grown from Rs 175.05 on 27 June 2007 to Rs 185.20 on 29 June 2007. It had turned down from there on to arrive at Rs 178.30 on 6 July 2007.

There were 84,184 shares for trading on the counter today. The scrip had an average daily volume of 33,357 shares during the last one quarter.

The existing equity of the company stood at Rs 7.54 crore, with 75.4 lakh outstanding shares of a face value of Rs 10. The existing market price of Rs 188.90 disregards its FY 2007 EPS of Rs 14.01, by a PE multiple of 13.48.

During Q4 March 2007, Stone India’s net profit slumped 13.44% to Rs 2.77 crore as compared to Rs 3.20 crore in Q4 March 2006. Sales ascended 23.59% to Rs 19.33 crore in Q4 March 2007 as compared to Rs 15.64 crore in Q4 March 2006.

On 14 April 2007, the company had received an order for restoration and up gradation of 1,115 wagons from the Union Ministry of Defence. The order is valued at about Rs 14 crore, which is be completed by the next eight months.

On 23 April 2007, it entered into an exclusive agreement with ZRJC, China, to supply air conditioning systems for trains. This product will be constructed at its forthcoming plant in Nalagarh, Himachal Pradesh that enjoys tax benefits.

Stone India produces various equipments for the railways including alternators, air brakes and brake regulators. Despite this, the company also makes colour monitors and secondary components for the defence sector.