Gujarat Apollo Industries in demand

Gujarat Apollo Industries rose 4.29% to Rs 184.80 at 12:40 IS on BSE after company further invested Rs 7.4 crore in Apollo Earthmovers to make it a subsidiary company as a part of consolidation of construction equipment business of the group.

The stock hit a high of Rs 187 and a low of Rs 173.65 so far during the day. The stock had a 52-week high of Rs 399 on 2 January 2008 and a 52-week low of Rs 111 on 2 April 2007.

The company’s current equity is Rs 10.5 crore. Face value per share is Rs 10.

The current price of Rs 184.80 discounts its Q3 December 2007 annualized EPS of Rs 20.27, by a PE multiple of 9.11.

Gujarat Apollo Industries net profit rose 10.8% to Rs 5.32 crore on 12.1% rise in sales to Rs 37.98 crore in Q3 December 2007 over Q3 December 2006.

This has increased Gujarat Apollo Industries (GAIL)' investment in Apollo Earthmovers (AEML) from Rs 5.9 crore as of 31 March 2007 to Rs 13.3 crore. Also, an investment of about Rs 1.2 crore has been made by the company in Apollo Construction Equipments (ACEPL). The company plans to make ACEPL as its subsidiary in FY 2008-09.

AEML was an original promoter company of GAIL and has been engaged in the manufacturing of construction equipment for state and rural roads. Apollo Industrial Products (AIPL) which is a wholly owned subsidiary of AEML also now comes under Gujarat Apollo Industries' fold. The consolidated revenue of AEML in FY 2007-08 is estimated to be Rs 80 crore which was Rs 52 crore during FY 2006-07.

Gujarat Apollo Industries is a leading manufacturer of road construction and maintenance machinery.