McNally Bharat Engineering Acquisition of Sayaji Iron & Engineering Co

McNally Bharat Engineering Company rose 2.23% to Rs 176.55 at 14:33 IST on BSE after its board approved acquiring 68.3% in Gujarat-based Sayaji Iron & Engineering Company.

The stock hit a high of Rs 182 and a low of Rs 171.10 so far during the day. The stock had a 52-week high of Rs 316.90 on 17 December 2007 and the stock hit a 52-week low of Rs 140.25 on 24 March 2008.

The company’s current equity is Rs 31.24 crore. Face value per share is Rs 10.

The current price of Rs 176.55 discounts its Q3 December 2007 annualised EPS of Rs 6.9, by a PE multiple of 25.58.

The company said the stake would be purchased from the existing founders of Sayaji for Rs 59 crore.

Sayaji with its plant located in Vadodara, Gujarat and represented by its 8 marketing offices across the country is currently engaged in manufacturing wide range of equipment used in crushing, grinding, screening, road making, construction and material handling equipment, customized equipment for steel, cement, power and coal plants and complex turnkey projects.

McNally Bharat Engineering Company provides turnkey solutions in the areas of power, steel, alumina, material handling, mineral beneficiation, coal washing, ash handling and disposal, port cranes, civic and industrial water supply.

McNally Bharat Engineering Company’s net profit rose 29.2% to Rs 4.95 crore on 4.8% growth in net sales to Rs 118.13 crore in Q3 December 2007 over Q3 December 2006.