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Asian Electronics up on BPO order
June 14, 2003 15:15 IST
Asian Electronics has zoomed in the recent past on talk that it has bagged a huge outsourcing order for energy-efficient tube light systems. From a recent low of Rs 18.60 touched on 31 March 2003, the Asian Electronics stock has risen 347.58% to Rs 83.25 on 13 June 2003. The 30-share BSE Sensitive Index (Sensex) has risen 10.01% in the same period. The scrip's average daily volume on BSE has gone up from 20,000 shares to over 3 lakh shares in the same period.
While retail investors are active, institutional interest is also informed to be rising on the Asian Electronics counter in the recent past, as indicated from the rising volumes.
The recent surge on the Asian Electronics counter has come on market talk that the company is close to acquiring a $ 40-million outsourcing deal from a US consumer durable giant for the company's flagship product.
The company manufactures energy efficient retrofit tube light systems, which save up to 45% power compared to conventional tube lights.
The US company is believed to have signed the Letter of Intent (LoI) with Asian Electronics for the supply of the energy-efficient tube light units and an announcement from the company is expected soon. The said order is to be executed over the next two years.
The US order is likely to substantially improve the company's sales in the next two years. Players expect the company to post a substantial improvement in sales and net profit in the coming quarters.
The company's recent performance has not been very impressive. For the quarter ended 31 March 2003, the company posted a net profit of Rs 0.10 crore (Rs 0.46 crore) on net sales of Rs 22.39 crore (Rs 23.45 crore). For the year ended 31 March 2003, the company's net profit works out to Rs 2.24 crore (Rs 0.91 crore). On an equity base of Rs 8.50 crore, the earnings per share works out Rs 2.60 per share.
Interestingly, the company's book value as on 31 March 2003, stood at Rs 157.92 per share.
The promoters' stake in the company is 40.25% of total equity capital. While institutions and non-promoter corporates hold 9.50% in the company, the public holds 37.25% in the company. International Finance Corporation holds 12.5% stake in the company.