CMI gains after new order win

CMI rose 2.84% to Rs 213.50 at 12:31 IST on BSE after the company won an order worth Rs 36.24 crore by GETCO for supplying cables.

The announcement was made after market hours yesterday, 8 May 2017.

Meanwhile, the S&P BSE Sensex was 4.54 points or 0.02% at 29,930.69. The BSE Small-Cap index was up 90.19 points, or 0.58% to 15,552.77.

On BSE, so far 17,000 shares were traded in the counter as against average daily volume of 61,346 shares in the past one quarter. The stock hit a high of Rs 214.30 and a low of Rs 211 so far during the day. The stock had hit a 52-week high of Rs 260 on 3 June 2016. The stock had hit a 52-week low of Rs 118.10 on 9 November 2016.

The stock had outperformed the market over the past one month till 8 May 2017, rising 14.41% compared with 0.74% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 14.79% as against Sensex's 5.61% rise.

The small-cap company has equity capital of Rs 15.03 crore. Face value per share is Rs 10.

CMI won an order from Gujarat Energy Transmission Corporation (GETCO) for supply of 66KV XLPE cables. The order is revenue accretive and will be delivered within two quarters of the year ending 31 March 2018 (FY 2018). CMI recently started commercial production at its newly acquired facility at Baddi, Himachal Pradesh, which was a subsidiary of General Cable Corporation. The cables for the new order will also be manufactured at the new facility.

CMI chairman Amit Jain said that currently over 12% of the company's total revenue comes from the power sector and it expects that around 15% of revenues by FY 2019 will be from this segment.

CMI's consolidated net profit dropped 57.59% to Rs 2.04 crore on 12.46% growth in net sales to Rs 74.72 crore in Q3 December 2016 over Q3 December 2015.

CMI is engaged in manufacturing of special type of cables as per national/international specifications to meet the critical requirements of its customers.

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