Modison Metals gains after deal with German firm

Modison Metals rose 3.50% to Rs 72.50 at 14:33 IST on BSE after the company said it entered a deal to buy key assets for high voltage contact business from a German company.

The announcement was made during trading hours today, 23 November 2017.

Meanwhile, the S&P BSE Sensex was down 39.90 points, or 0.12% to 33,521.65.

On the BSE, 53,000 shares were traded in the counter so far, compared with average daily volumes of 63,232 shares in the past one quarter. The stock had hit a high of Rs 73.90 and a low of Rs 71.75 so far during the day. The stock hit a record high of Rs 83 on 19 October 2017. The stock hit a 52-week low of Rs 48.50 on 2 December 2016.

The stock had underperformed the market over the past 30 days till 22 November 2017, falling 10.88% compared with 2.93% rise in the Sensex. The scrip had outperformed the market in past one quarter, rising 17.44% as against Sensex's 6.22% rise. The scrip had also outperformed the market in past one year, rising 39.82% as against Sensex's 28.83% rise.

The small-cap company has equity capital of Rs 3.25 crore. Face value per share is Re 1.

Modison Metals said it entered into an agreement for acquisition of key assets for high voltage contact business from DODUCO, Germany, with the latest patent. DODUCO is a former collaborator of Modison Metals. The agreement was signed with a condition that DODUCO will not produce these parts for the next five years.

Net profit of Modison Metals declined 35.7% to Rs 3.71 on 3.5% rise in net sales to Rs 48.20 crore in Q2 September 2017 over Q2 September 2016.

Modison Metals makes electrical contact materials and finished contacts for low, medium and high tension switchgear.

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