Sundram Fasteners slips after acquisition

Sundram Fasteners dropped 0.50% to Rs 39.45 at 10:41 IST on BSE after the company said it has acquired 100% capital of Sundram Fasteners (Zhejiang), China, from Sundram Fasteners Investments, a wholly owned subsidiary of the company.

The company made this announcement after trading hours on Wednesday, 27 February 2008.

Meanwhile, BSE Sensex was down 52.90 points or 0.30% to 17,773.09, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 3,987 shares were traded in the counter. The scrip had an average daily volume of 2.05 lakh shares in the past one quarter.

The stock hit a high of Rs 39.90 and a low of Rs 39 so far during the day. The stock had a 52-week high of Rs 73 on 14 May 2007 and a 52-week low of Rs 35.65 on 22 January 2008.

The small-cap scrip had underperformed the market over the past one month till 27 February 2008, declining 1.98% compared to the Sensex’s decline of 1.47%. It had also underperformed the market in the past one quarter, declining 19.90% compared to Sensex’s decline of 6.20%.

The company’s current equity is Rs 21.01 crore. Face value per share is Rs 1.

The current price of Rs 39.45 discounts its Q3 December 2007 annualized EPS of Rs 3.43, by a PE multiple of 11.50.

Sundram Fasteners (Zhejiang), China (SFZL) has now become a wholly owned subsidiary of Sundram Fasteners.

Sundram Fastener’s net profit declined 13.8% to Rs 18.04 crore on 2.4% fall in net sales to Rs 297.51 crore in Q3 December 2007 over Q3 December 2006.

Sundram Fasteners is engaged in manufacturing high tensile fasteners, cold forgings/extrusions including precision formed gears, powder metal parts, oil pumps/water pumps and engine parts, radiator caps, hot and warm forgings, auto components and iron powder.