Axiscades Engineering spurts on winning Airbus deal

Axiscades Engineering Technologies rose 12.42% to Rs 62 after the company said it won key engagement with Airbus.

Axiscades Engineering announced after market hours yesterday, 17 December 2019, that it has been selected by Airbus to work on fuselage, product development and customer support services across different Airbus locations.

This is the third time Airbus has selected Axiscades for critical engineering services and the contract was won among stiff global competition across major engineering services firms across the industry.

Since its incubation in 2011, the Axiscades and Airbus engagement has evolved to cater to increasingly crucial projects with the aerospace major. Over the past few years, the company has been investing heavily in catering to new trends in the industry and has been delivering cutting edge services spanning different areas of aerospace engineering.

Shares of Axiscades Engineering soared 26.78% in four trading sessions to its current market price of Rs 62 from its recent closing low of Rs 48.90 on Thursday, 12 December 2019.

The Nifty 50 index rose 42.50 points or 0.35% to 12,207.50.

On the technical front, the stock's RSI (relative strength index) stood at 52.760. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading below its 50-day moving average (DMA) placed at Rs 67.29 as well as below its 200 DMA placed at Rs 64.71. Both these levels will act as a resistance in the upcoming trading sessions.

On consolidated basis, Axiscades Engineering Technologies reported a net profit of Rs 4.54 crore in Q2 September 2019 as against a net loss of Rs 11.72 crore in Q2 September 2018. Net sales fell 3.6% to Rs 156.56 crore in Q2 September 2019 over Q2 September 2018.

Axiscades Engineering Technologies provides mechanical, electrical, electronics and manufacturing engineering services. It caters to the aerospace, defense, heavy engineering, automotive and industrial production sectors.

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