Sujana Metal shines on acquisition

Sujana Metal Products surged 5.05% to Rs 24.95 at 12:15 IST on BSE after the company announced the acquisition of three steel units with an investment of Rs 180 crore.

The stock hit a high of Rs 25.95 and a low of Rs 23.50 so far during the day. The stock had a 52-week high of Rs 66.05 on 12 July 2007 and the stock hit a 52-week low of Rs 16.35 on 24 March 2008.

The company’s current equity is Rs 27.59 crore. Face value per share is Rs 5.

The current price of Rs 24.95 discounts its Q3 march 2008 annualised EPS of Rs 8.33, by a PE multiple of 3.

With these latest acquisitions, Sujana Metal Products has made five acquisitions in less than 12 months. The units acquired earlier are Kamini Steels and Handum Industries.

Sujana Metal Products’ net profit fell 19.6% to Rs 13.17 crore on 69.1% increase in net sales to Rs 389.51 crore in Q3 March 2008 over Q3 March 2007.

The company is engaged in manufacturing and marketing of voltage towers, structural steels and TMT bars. The products of the company comprise of rounds reinforcement bars, angles, channels, flats, and I beams. The company markets its products in India, Germany, Japan, USA and Canada.