Kinetic Engineering, Kinetic Motor accelerate on a likely merger

Kinetic Engineering made this announcement after market hours on Wednesday, 7 December 2011.

Meanwhile, the BSE Sensex was down 90.04 points, or 0.53% to 16,787.02.

On BSE, 720 shares were traded in the counter as against average daily volume of 1,107shares in the past one quarter.

The stock hit a high of Rs 99.90 and a low of Rs 99.65 so far during the day. The stock had hit a 52-week low of Rs 77 on 23 November 2011. The stock had hit a 52-week high of Rs 205.20 on 7 January 2011.

The small-cap stock had underperformed the market over the past one month till 7 December 2011, falling 6.91% compared with the Sensex's 3.9% fall. The scrip had also underperformed the market in past one quarter, declining 16.42% as against 1.1% decline in the Sensex.

The company has an equity capital of Rs 10.37 crore. Face value per share is Rs 10.

Kinetic Engineering has a direct holding of 36.92% in Kinetic Motors (as per the shareholding pattern as on 30 September 2011). Kinetic Motor Company holds 20% equity stake in Mahindra group two-wheeler maker Mahindra Two Wheelers. It may be recalled that the Mahindra group had acquired the business assets of Kinetic Motor Company in 2008.

Kinetic Engineering reported a net loss of Rs 7 crore in Q2 September 2011, higher than net loss of Rs 2.05 crore in Q2 September 2010. Net sales declined 13.3% to Rs 21.27 crore in Q2 September 2011 over Q2 September 2010.

Kinetic Engineering manufactures a variety of automobile components. The company manufactures transmission components, engine components, as well as gearbox and assemblies for auto and non-auto products. Kinetic also manufactures various body components, has a press shop, paint shop, and assembles complete vehicles for some of its customers.

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