Atlas Copco slumps on deferring decision on buyback

Atlas Copco India was locked at 10% lower circuit at Rs 1,067.35 at 10:35 IST on BSE after the company said on Wednesday, 25 June 2008, its board has decided to defer a decision on buy back of shares.

The stock hit a high of Rs 1,160 and a low of Rs 1,067.35 so far during the day. The stock had a 52-week high of Rs 1,799 on 2 January 2008 and a 52-week low of Rs 680 on 24 March 2008.

The company has an equity capital of Rs 22.56 crore. Face value per share is Rs 10.

The current price of Rs 1,067.35 discounts its Q1 March 2008 annualised EPS of Rs 44.24, by a PE multiple of 24.12.

Atlas Copco did not indicate the reason or a date when the proposal would be considered. Last week, Atlas had said the board would meet on Wednesday 25 June 2008 to consider a share buy back.

Atlas Copco India’s net profit rose 38.8% to Rs 24.95 crore on 28.4% increase in net sales to Rs 283.93 crore in Q1 March 2008 over Q1 March 2007.

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