Solitaire Machine surges on order win

Solitaire Machine Tools surged 4.46% to Rs 17.55 at 14:33 IST on BSE after the company said it has tied up with an Italian machine tool manufacturer to rebuild a high value grinding machine for SKF India.

The company made this announcement during trading hours today, 26 June 2007.
Meanwhile, the BSE Sensex was up 61.18 points, or 0.43%, to 14,281.25, boosted by the US Federal Reserve's decision on Wednesday, 25 June 2008, to keep interest rates unchanged. Fed also signaled that it was in no hurry to raise rates, even as it voiced greater concern about inflation.
On BSE, 1,500 shares were traded in the counter. The scrip had an average daily volume of 3,555 shares in the past one quarter.
The stock hit a high of Rs 17.55 and a low of Rs 16.15 so far during the day. The stock had a 52-week high of Rs 35.95 on 11 January 2008 and a 52-week low of Rs 12 on 2 July 2007.
The small-cap company had outperformed the market over the past one month till 25 June 2008, declining 10.40% compared to the Sensex’s decline of 12.63%. It had also outperformed the market in the past one quarter, gaining 11.26% compared to Sensex’s decline of 11.21%.
The company has an equity capital of Rs 4.55 crore. Face value per share is Rs 10.
The current price of Rs 17.55 discounts its Q1 March 2008 annualised EPS of Rs 0.97, by a PE multiple of 18.09.
Solitaire Machine Tools’ Baroda plant will execute the work and the technical know how will be provided by the Italian company. The total contract is valued at Rs 20 crore and the order for the first batch is valued Rs 2 crore.
Solitaire Machine Tools’ net profit fell 50% to Rs 0.11 crore on 12.3% rise in net sales to Rs 3.01 crore in Q4 March 2008 over Q4 March 2007.

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