Atlas Copco gains on acquisition

Atlas Copco India gained 0.96% to Rs 985.55 at 13:08 IST on BSE on reports the company has acquired 25% stake each in two Hyderabad based firms Focus Rocbit and Prisma Roctools in an all cash deal for an undisclosed sum.

The stock hit a high of Rs 1010 and a low of Rs 980 so far during the day. The stock had a 52-week high of Rs 1799 on 2 January 2008 and a 52-week low of Rs 680 on 24 March 2008.

The company’s current equity is Rs 22.56 crore. Face value per share is Rs 10.

The current price of Rs 985.55 discounts its Q4 December 2007 EPS of Rs 29.04, by a PE multiple of 33.94.

Focus Rocbit is a manufacturer of bits for rotary drilling, whereas Prisma Roctools makes bits and hammers for down the hole (DTH) drilling.

Atlas Copco India’s net profit declined 7.5% to Rs 16.38 crore on 40.3% growth in net sales to Rs 292.45 crore in Q4 December 2007 over Q4 December 2006.

The company is engaged in manufacturing and selling air and gas processors, rock drills, pusher legs, merchandised drilling equipment and rock drilling tools. The company's products serve industrial, construction and mining industry. It operates through two segments: industrial segment and construction and mining segment.