Refex Refrigerants heats up on overseas acquisition

Refex Refrigerants gained 2.17% to Rs 160 at 10:26 IST on BSE after the company said on Friday, 29 February 2008 it has acquired 51% stake in Singapore based Kaltech Engineering and Refrigeration for Singapore dollar 11 million or Rs 31 crore.

The company made this announcement after trading hours on Friday, 29 February 2008.

Meanwhile, BSE Sensex was down 494.45 points or 2.81% to 17,084.27, as Asian stocks fell sharply amid growing concerns about the global impact of a US slowdown.

On BSE, 1,874 shares were traded in the counter. The scrip had an average daily volume of 97,505 shares in the past one quarter.

The stock hit a high of Rs 160 and a low of Rs 154 so far during the day. The stock had a 52-week high of Rs 222 on 3 January 2008 and a 52-week low of Rs 57 on 28 August 2007.

The small-cap scrip had outperformed the market over the past one month till 29 February 2008, gaining 3.16% compared to the Sensex’s decline of 0.40%. It had also outperformed the market in the past one quarter, rising 4.78% compared to Sensex’s decline of 9.22%.

The company’s current equity is Rs 15.48 crore. Face value per share is Rs 10.

The current price of Rs 160 discounts its Q3 December 2007 annualized EPS of Rs 7.97, by a PE multiple of 20.08.

Kaltech Engineering and Refrigeration is engaged in trading refrigerant gases catering to both, the domestic and export markets. Refex Refrigerants would further acquire 39% for Singapore $8.80 millions (Rs 25 crore) in the company thereby increasing its holding to 90% in Kaltech.

Refex Refrigerants’ net profit rose 47.8% to Rs 3.03 crore on 53.6% growth in net sales to Rs 22.61 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in refilling and marketing non-ozone depleting refrigerant gases known as HydrofluroCarbons (HFCs). HFCs are used in auto air conditioners, room air conditioners, refrigerators and refrigerating equipments.