Valecha Engineering tumbles despite bonus proposal

Valecha Engineering plunged 7.72% to Rs 128.50 at 14:42 IST on BSE even as the company said its board will meet on 30 July 2008 to consider issue of bonus shares.

The company made this announcement during trading hours today, 1 July 2008.

The stock hit a high of Rs 151.90 and a low of Rs 128 so far during the day. The stock had a 52-week high of Rs 358 on 4 January 2008 and a 52-week low of Rs 119 on 24 June 2008.

The company has an equity capital of Rs 11.95 crore. Face value per share is Rs 10.

The current price of Rs 128.50 discounts its Q3 December 2007 annualised EPS of Rs 11.58, by a PE multiple of 11.10.

In March 2008, Valecha Engineering bagged new projects worth Rs 250 crore, which includes road works at Pune, Delhi airport express line work and piling projects.

Valecha Engineering’s net profit declined 84.4% to Rs 3.46 crore on 68.7% growth in net sales to Rs 116.20 crore in Q3 December 2007 over Q3 December 2006.

The Rs 250 crore company is primarily a player in the road construction business, from which it derives 70% of its revenues. Its road projects are present across many states in the country.