Renaissance Jewellery sparkles after overseas acquisition

Renaissance Jewellery sparkles after overseas acquisition

Renaissance Jewellery rose 6.67% to Rs 94.30 at 12:34 IST on BSE, on acquiring the business & assets of JBR, a jewellery wholesaler based in New York for a total consideration of $40 million, through its subsidiary Renaissance Jewelry New York.

The company made this announcement before market hours today, 14 February 2008.

Meanwhile, BSE Sensex was up 702.01 points or 4.14% to 17,651.15, on strong cues from the global markets. Stocks rose across the globe as a surprise increase in US retail sales in January 2008 helped ease recession worries in the world's largest economy.

On BSE, 6,503 shares were traded in the counter. The scrip had an average daily volume of 2.78 lakh shares in the past one quarter.

The stock hit a high of Rs 95 and a low of Rs 91.10 so far during the day. The stock had a 52-week high of Rs 200 on 12 December 2007 and a 52-week low of Rs 83.60 on 24 January 2008.

The small-cap scrip had underperformed the market over the past one month till 13 February 2008, declining 35.26% compared to the Sensex’s decline of 16.31%.

The company’s current equity is Rs 18.36 crore. Face value per share is Rs 10.

The current price of Rs 94.30 discounts its Q3 December 2007 annualized EPS of Rs 14.53, by a PE multiple of 6.49.

Renaissance Jewellery reported net profit of Rs 6.67 crore on net sales of Rs 141.27 crore in Q3 December 2007. The comparable figures for corresponding previous year were not available.

Renaissance Jewellery has two manufacturing units at Seepz special economic zone in Mumbai and an export-oriented unit at Bhavnagar in Gujarat. It also has subsidiaries having units in MIDC, Andheri and in Mumbai.