Elecon Engineering>>New order does not benefit

New order does not benefit Elecon Engineering

Elecon Engineering Company declined 3.24% to Rs 215 at 11:43 IST on BSE, even as the company said it has received an order worth Rs 188.52 crore from Steel Authority of India for supply & erection of equipments for expansion of IISCO Steel Plant.

The company made this announcement during trading hours today, 11 February 2008.

Meanwhile, BSE Sensex was down 596.71 points or 3.42% to 16,868.18 as poor debut of Reliance Power, which had come out with India's biggest IPO, last month, hit market sentiment.

On BSE, 18,347 shares were traded in the counter. The scrip had an average daily volume of 92,609 shares in the past one quarter.

The stock hit a high of Rs 224.80 and a low of Rs 211.50 so far during the day. The stock had a 52-week high of Rs 343 on 20 December 2007 and a 52-week low of Rs 111 on 14 March 2007.

The mid-cap scrip had underperformed the market over the past one month till 8 February 2008, declining 28.02% compared to the Sensex’s decline of 15.15%. It had also underperformed the market in the past one quarter, declining 14.24% compared to Sensex’s decline of 7.63%.

The company’s current equity is Rs 18.57 crore. Face value per share is Rs 2. The current price of Rs 215 discounts its Q3 December 2007 annualized EPS of Rs 7.15, by a PE multiple of 30.07.

On 8 February 2008, Elecon Engineering won an order worth Rs 47 crore from Sical Iron Ore Terminals, Chennai for supply and erection of equipment for an iron ore terminal in Chennai.

On 4 February 2008, Elecon Engineering received an order worth Rs 11 crore from Sichaon Electricity Power Design & Consulting Company, Chandrapur, Maharashtra for supplying wagon tipplers.

On 1 February 2008, the company secured an order worth Rs 61.50 crore from Tecpro System, Chennai for supplying combined heat and power equipments. On 23 January 2008, the company bagged orders worth Rs 47.54 crore from various clients.

Elecon Engineering Company’s net profit rose 13.1% to Rs 16.59 crore on 10.1% growth in net sales to Rs 185.24 crore in Q3 December 2007 over Q3 December 2006.

Elecon Engineering Company manufactures all kinds of mechanical handling equipment such as bucket elevators, belt conveyors, gravity roller conveyors, bag-filling machines, bag stacking machines, overhead chair conveyors.