Menon Bearings spurts after announcing strong results, bonus issue

Menon Bearings was locked at 20% upper circuit at Rs 82.60 at 14:41 IST on BSE after the company reported strong Q1 June 2016 earnings and as the company's board of directors recommended issue of one bonus share for every five shares held.

Meanwhile, the S&P BSE Sensex was up 78.52 points or 0.28% at 27,893.70.

On BSE, so far 4.14 lakh shares were traded in the counter as against average daily volume of 10,633 shares in the past one quarter. The stock hit a low of Rs 68.50 so far during the day. The stock had hit a record high of Rs 82.85 on 5 January 2016. The stock had hit a 52-week low of Rs 39.95 on 17 July 2015. The stock had outperformed the market over the past one month till 13 July 2016, surging 12.96% compared with 5.37% rise in the Sensex. The scrip had also outperformed the market in past one quarter, advancing 9.29% as against Sensex's 8.54% rise.

The small-cap company has equity capital of Rs 4.67 crore. Face value per share is Rs 1.

Menon Bearings' net profit surged 55.66% to Rs 4.67 crore on 16.39% growth in total income to Rs 31.03 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 14 July 2016.

The company's board of directors recommended issue of one bonus share for every five shares held. The board also approved the addition in production capacity of bimetal engine bearings/bushings plant and aluminium critical cast components plant.

Menon Bearings is engaged in the manufacturing of auto components.

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