Shivalik Bimetal spurts

Shivalik Bimetal spurts

Shivalik Bimetal Controls surged 4.84% to Rs 31.40 at 10:24 IST on BSE, on joining hands with ArcelorMittal Stainless & Nickel Alloys, France and DNick Holding plc to form a new venture to manufacture clad metal products.

The company made this announcement after trading hours on Thursday, 7 February 2008.

Meanwhile, BSE Sensex was up 21.68 points or 0.12% to 17,548.61.

On BSE, 8,915 shares were traded in the counter. The scrip had an average daily volume of 31,430 shares in the past one quarter.

The stock hit a high of Rs 31.40 and a low of Rs 31.40 so far during the day. The stock had a 52-week high of Rs 32.90 on 7 January 2008 and a 52-week low of Rs 12.80 on 28 March 2007.

The small-cap scrip had outperformed the market over the past one month till 7 February 2008, gaining 7.54% compared to the Sensex’s decline of 16.02%. It had also outperformed the market in the past one quarter, rising 19.32% compared to Sensex’s decline of 7.30%.

The company’s current equity is Rs 3.84 crore. Face value per share is Rs 2.

The current price of Rs 31.40 discounts its Q3 December 2007 annualized EPS of Rs 4.13, by a PE multiple of 7.60.

The new venture to be known as Innovative Clad Solutions with one-third equity participation from the three joint venture partners each will be operational by 15 February 2008.

Shivalik Bimetal Controls’ net profit rose 4.8% to Rs 1.98 crore on 12.7% growth in net sales to Rs 17.53 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and selling of thermostatic bimetal/trimetal strips and other clad materials. It also operates in joining of materials through various methods such as diffusion bonding or cladding, electron beam welding, solder reflow and resistance welding.