Rajendra Mechanical Industries shines on bonus plan

Rajendra Mechanical Industries shines on bonus plan

Rajendra Mechanical Industries surged 5.26% to Rs 107.15 at 11:35 IST on BSE after the company said its board will meet on 30 June 2008 to consider issue of bonus shares.

The company made this announcement after trading hours on Friday, 20 June 2007.

Meanwhile, the BSE Sensex was down 312.68 points, or 2.15%, to 14,258.61 on negative cues from global markets. US stocks fell sharply on Friday, 20 June 2008 as rising oil prices and warnings of more mortgage-related write-downs at banks reignited investor fears of worse to come.

On BSE, 1,982 shares were traded in the counter. The scrip had an average daily volume of 1,379 shares in the past one quarter.

The stock hit a high of Rs 111.95 and a low of Rs 104.05 so far during the day. The stock had a 52-week high of Rs 241.75 on 2 January 2008 and a 52-week low of Rs 40.25 on 27 June 2007.

The small-cap company had outperformed the market over the past one month till 20 June 2008, declining 4.55% compared to the Sensex's decline of 13.82%. It had also outperformed the market in the past one quarter, gaining 13.05% compared to Sensex's return of 2.82%.

The company has an equity capital of Rs 4.79 crore. Face value per share is Rs 10.

The current price of Rs 107.15 discounts its Q3 December 2007 annualised EPS of Rs 21.80, by a PE multiple of 4.92.

Rajendra Mechanical Industries' net profit rose 289.6% to Rs 2.61 crore on 56.2% increase in net sales to Rs 42.85 crore in Q3 December 2007 over Q3 December 2006.

The company manufactures stainless steel seamless and welded pipes and bright bars at its manufacturing unit in Andheri, Mumbai. It obtains technical assistance from Kobe Steel, Japan.