Revival plan of unit adds sheen to Madras Aluminium

Revival plan of unit adds sheen to Madras Aluminium

Madras Aluminium Company rose 1.5% to Rs 632 at 14:16 IST on BSE after it decided to join hands with Ess Dee Aluminium to work towards the revival of its unit India Foils.

Ess Dee Aluminium rose 3.05% to Rs 630.90 and India Foils gained 5% to Rs 16.40.

The company announced this during market hours today, 18 January 2008.

BSE Sensex was down 132.33 points or 0.72% to 17,984.84.

On BSE, 278 shares were traded in the counter. The scrip had an average daily volume of 3,293 shares in the past one quarter.

The stock hit a high of Rs 638 and a low of Rs 616.40 so far during the day. The stock had a 52-week high of Rs 1,029.70 on 14 December 2007 and a 52-week low of Rs 380 on 28 February 2007.

The small-cap scrip had underperformed the market over the past one month till 15 February 2008, declining 22.32% compared to the Sensex’s decline of 8.05%. It also underperformed the market in the past one quarter, declining 33.61% compared to Sensex’s decline of 8.04%.

The company’s current equity is Rs 22.5 crore. Face value per share is Rs 10.

The current price of Rs 632 discounts its Q3 December 2007 annualized EPS of Rs 26.15, by a PE multiple of 24.16.

A promoter of India Foils, Madras Aluminium Company holds 38.8% stake in India foils.

Ess Dee Aluminium is reportedly eyeing 90% stake in India Foils post restructuring.

Madras Aluminium Company’s net profit declined 70% to Rs 14.71 crore on 11.1% decline in sales to Rs 110.05 crore in Q3 December 2007 over Q3 December 2006.

Madras Aluminium Company is engaged in the business of primary aluminum production.