New order does not benefit Petron Engineering

Petron Engineering Construction declined 4.99% to Rs 255.40 at 10:46 IST on BSE after the company said on Wednesday, 5 March 2008, it has received a letter of intent from Sterlite Industries for a total order worth Rs 5.20 crore.

The company made this announcement during trading hours on Wednesday, 5 March 2008, when the stock declined 4.21% to Rs 268.80.

On BSE, 126 shares were traded in the counter. The scrip had an average daily volume of 9,800 shares in the past one quarter.

The stock hit a high of Rs 260 and a low of Rs 255.40 far during the day. The stock had a 52-week high of Rs 560 on 4 January 2007 and a 52-week low of Rs 130 on 6 March 2007.

The small-cap scrip had underperformed the market over the past one month till 5 March 2008, declining 20.96% compared to the Sensex’s fall of 11.37%. It had also underperformed the market in the past one quarter, declining 30.26% compared to Sensex’s decline of 16.44%.

The company’s current equity is Rs 7.54 crore. Face value per share is Rs 2.

The current price of Rs 255.40 discounts Q3 December 2007 annualized EPS of Rs 5.84, by a PE multiple of 43.73.

In December 2007, Petron Engineering Construction (PECL) received orders worth Rs 98.87 crore for setting up boiler units for two power plants in northern India.

PECL’s net profit declined 68.7% to Rs 1.10 crore on 14.8% growth in net sales to Rs 64.81 crore in Q3 December 2007 over Q3 December 2006.

Petron Engineering Construction provides engineering and construction services for refineries, chemicals, cement, fertilizers, power and other industrial plants.