"IGARASHI MOTORS" in top gear

Igarashi Motors in top gear

Igarashi Motors India jumped 10.25% to Rs 74.75 at 13:53 IST on BSE, after it formed a joint venture with German auto component maker Robert Bosch to make electronic auto parts.

The company made this announcement during market hours today, 15 February 2008.

Meanwhile, BSE Sensex was up 212.21 points or 1.19% to 17,978.84 as Asian stocks recovered from early fall.

On BSE, 28,102 shares were traded in the counter. The scrip had an average daily volume of 36,075 shares in the past one quarter.

The stock hit a high of Rs 78.80 and a low of Rs 64.15 so far during the day. The stock had a 52-week high of Rs 138.95 on 15 February 2007 and a 52-week low of Rs 64.10 on 22 January 2008.

The small-cap scrip had underperformed the market over the past one month till 14 February 2008, declining 29.52% compared to the Sensex’s decline of 10.58%. It had also underperformed the market in the past one quarter, declining 28.59% compared to Sensex’s decline of 9.81%.

The company’s current equity is Rs 13.87 crore. Face value per share is Rs 10.

The current price of Rs 74.75 discounts its Q3 December 2007 annualized EPS of Rs 0.95, by a PE multiple of 78.68.

The new company to be headquartered in Chennai, India will commence its operations in the second half of 2008. Robert Bosch will own 51% of the joint venture, which will make motors, wiper systems, engine cooling and window lift systems. Igarashi Motors will have 49% stake.

Igarashi Motors India (IMIL)’s net profit rose 10% to Rs 0.33 crore on 8.9% growth in net sales to Rs 67.22 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and selling of micro motors and its accessories. The products include electric micro motors, rotor assembly and others mainly for the automotive sector.