XL Telecom wins buyer, but not investors

XL Telecom wins buyer, but not investors

XL Telecom & Energy declined 1.81% to Rs 309.90 at 15:25 IST on BSE, even as the company said on Monday, 11 February 2008 it has secured an export order worth Rs 234 crore for the supply of solar panels to the European market.

The company made this announcement during trading hours today, 11 February 2008.

Meanwhile, BSE Sensex was down 908.62 points or 5.20% to 16,556.27 as poor debut of Reliance Power, which had come out with India's biggest IPO, last month, hit market sentiment. Market men had initially expected the price to double on debut, but stock market turmoil had lowered investor risk appetite and expectations were toned down subsequently with market men expecting a premium of about Rs 75-to Rs 150 above the IPO price on debut. The Reliance Power IPO was subscribed 73 times.

On BSE, 23,284 shares were traded in the counter. The scrip had an average daily volume of 49,569 shares in the past one quarter.

The stock hit a high of Rs 331.35 and a low of Rs 299.85 so far during the day. The stock had a 52-week high of Rs 595 on 31 December 2007 and a 52-week low of Rs 94 on 12 March 2007.

The small-cap scrip had underperformed the market over the past one month till 8 February 2008, declining 32.27% compared to the Sensex’s decline of 15.15%. It had outperformed the market in the past one quarter, gaining 12.59% compared to Sensex’s decline of 7.63%.

The company’s current equity is Rs 17.19 crore. Face value per share is Rs 10.

The current price of Rs 309.90 discounts its Q3 December 2007 annualized EPS of Rs 23.89, by a PE multiple of 12.97.

XL Telecom said its total outstanding order book for the export of solar panels stands at more than Rs 500 crore.

XL Telecom & Energy’s net profit rose 55.2% to Rs 8.66 crore on 16.7% growth in net sales to Rs 150.45 in Q3 December 2007 over Q3 December 2006.

The company provides telecommunication services. The company manufactures CDMA mobile phones and FWP phones. The company operates through four segments namely CDMA mobile phones, SMPS systems and jointing kits and components. Its customers include Reliance Infocomm, Kyocera, Axesstel, Corning and Siemens.