Modison Metals gains after signing MoU with Russian firm

Modison Metals gained 2.94% to Rs 63.10 at 11:13 IST on BSE after the company signed a memorandum of understanding with Ekaterinburg Non-Ferrous Processing Plant, Russia, to float a joint venture company in India.

The announcement was made after market hours yesterday, 4 July 2016.

Meanwhile, the BSE Sensex was down 61.73 points , or 0.23%, to 27,217.03

On BSE, so far 37,250 shares were traded in the counter as compared with average daily volume of 21,053 shares in the past one quarter. The stock hit a high of Rs 65.60 and a low of Rs 61.50 so far during the day. The stock hit a 52-week high of Rs 67.40 in intraday trade yesterday, 4 July 2016. The stock hit a 52-week low of Rs 36.05 on 23 September 2015. The stock had outperformed the market over the past 30 days till 4 July 2016, advancing 19.3% compared with Sensex's 1.62% rise. The scrip also outperformed the market in past one quarter, rising 19.07% as against Sensex's 9.63% gain.

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

Modison Metals said that the proposed joint venture with the Russian company will manufacture and sell technology, precious metal products for electronic and automobile industry in India. Ekaterinburg Non-Ferrous Metal Processing Plant renders full range of precious metals refining and processing services and manufactures products of industrial usage made of gold, silver and platinum-group metals. Ekaterinburg Non-Ferrous Processing Plant belongs to the Renova Group.

Modison Metals manufactures electrical contacts for low, medium and high voltage switchgear industries under one roof.

Modison Metals' net profit rose 248.48% to Rs 3.45 crore on 2.84% rise in net sales to Rs 45.55 crore in Q4 March 2016 over Q4 March 2015.

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