New order does not benefit Emco

Emco dropped 1.29% to Rs 1085 at 10:44 IST on BSE even as the company said it has bagged an order worth Rs 92 crore from Corporate Power, Ranchi, Jharkhand for 400 kilovolt double circuit/double strung transmission line on turnkey basis.

The company made this announcement during trading hours today, 13 March 2008.

The stock hit a high of Rs 1129.85 and a low of Rs 1066 so far during the day. The stock had a 52-week high of Rs 1650 on 17 January 2008 and a 52-week low of Rs 740 on 14 March 2007.

The company’s current equity is Rs 11.76 crore. Face value per share is Rs 10.

The current price of Rs 1085 discounts its Q3 December 2007 annualized EPS of Rs 57.34, by a PE multiple of 18.92.

On 21 February 2008, Emco entered into a memorandum of understanding (MoU) for joint venture partnership with Edison Power (Pty), a South Africa based company, for manufacturing transformers in South Africa.

Emco’s net profit rose 52.6% to Rs 15.11 crore on 49.2% growth in net sales to Rs 243.36 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and marketing furnace and rectifier transformers and electronic energy meters.