Kavveri Telecom Products gains on overseas acquisition

Kavveri Telecom Products was up 1.92% to Rs 286.15 at 14:16 IST on BSE on acquiring two foreign firms through its Canada-based arm.

The company made this announcement during trading hours today, 16 January 2008.

Meanwhile, BSE Sensex was down 645.32 points or 3.19% to 19,605.77.

On BSE 1.06 lakh shares were traded in the counter. The scrip had an average daily volume of 38,623 shares in the past one quarter.

The stock hit a high of Rs 294.75 and a low of Rs 285 so far during the day. The stock had a 52-week high of Rs 304.70 on 2 January 2008 and had touched a 52-week low of Rs 44.10 on 28 March 2007.

The mid-cap scrip had outperformed the market over the past one month till 15 January 2008, gaining 26.81% compared with the Sensex's return of 5.14%. It had also outperformed the market in the past one quarter, surging 63.18% compared with the Sensex's rise of 8.20%.

The company's current equity is Rs 10.06 crore. Face value per share is Rs 10.

The current price of Rs 259 discounts Q3 December 2007 annualised EPS of Rs 24.97 by a PE multiple of 7.57.

The company has acquired US-based Spotwave Wireless Inc and Canada-based Spotwave Wireless Inc through the company's wholly owned subsidiary Kavveri Technologies Inc, Canada.

Spotwave Wireless is specialised in providing products for indoor wireless coverage solutions. With this acquisition, Kavveri Telecom Products is introducing intelligent adaptive repeater in-building solutions.

Kavveri Telecom Products' net profit shot up 205% to Rs 6.13 crore on a 274.9% leap in net sales to Rs 43 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in design, development and manufacture of radio frequency (RF) products and antennas for telecom, defence and space applications in India and abroad and solar modules and solar systems for various applications