kirloskar brothers surges on new order win

Kirloskar Brothers surged 5.75% to Rs 254 at 11:25 IST on BSE after the company said its joint venture firm has received an order worth Rs 933.76 crore from the Andhra Pradesh state government's Irrigation & CAD Department for building a pump house.


The company made this announcement after trading hours on Wednesday, 14 May 2008.
Meanwhile, the BSE Sensex was up 266.76 points, or 1.57%, to 17,245.11, following a rise in US stocks on Wednesday, 14 May 2008, after data showed US consumer prices rose a smaller-than-expected 0.2% in April 2008. The data helped ease fears of an inflationary spurt triggered by soaring oil prices and suggested that the Federal Reserve might have more latitude to keep interest rates at 2%.
On BSE, 918 shares were traded in the counter. The scrip had an average daily volume of 30,413 shares in the past one quarter.
The stock hit a high of Rs 256.80 and a low of Rs 250 so far during the day. The stock had a 52-week high of Rs 527 on 3 October 2007 and the stock hit a 52-week low of Rs 206.40 on 24 March 2008.
The mid-cap scrip had underperformed the market over the past one month till 14 May 2008, declining 4.55% compared to the Sensex’s return of 5.11%. It had also underperformed the market in the past one quarter, declining 30.17% compared to Sensex’s decline of 4.44%.
The company’s current equity is Rs 21.15 crore. Face value per share is Rs 2.
The current price of Rs 254 discounts its Q4 March 2008 annualised EPS of Rs 19.92, by a PE multiple of 12.75.
The company’s share in the order is Rs 150 crore.
On 15 April 2008, Kirloskar Brother received a letter of intent for an order worth Rs 166.77 crore from Damodar Valley Corporation - Kolkata in respect of Koderma thermal power project.
On 1 April 2008, the company received a letter of intent for an order worth Rs 338.92 crore from the Government of Andhra Pradesh, Irrigation & CAD Department in respect of Rajiv Sagar Lift Irrigation project.
Kirloskar Brothers’ net profit rose 43.4% to Rs 52.66 crore on 26.9% increase in net sales to Rs 569.01 crore in Q4 March 2008 over Q4 March 2007.
The company is engaged in manufacturing and selling pumps and compressors. Products of the group include power driven pumps, valves, anti corrosion products, electric motors, spares and others. The group operates in three segments, namely, pump, compressors and others.