Omax Autos spurts on expansion plan

Omax Autos rose 5% to Rs 153.90 at 10:06 IST on BSE after the company's board of directors approved the proposal for diversification and expansion of existing capacity.

The announcement was made after market hours yesterday, 7 June 2018.

Meanwhile, the S&P BSE Sensex was down 53.48 points or 0.15% at 35,409.60.

On BSE, so far 3,940 shares were traded in the counter as against average daily volume of 4,910 shares in the past two weeks. The stock had hit a high of Rs 153.90 and a low of Rs 148.55 so far during the day. The stock had hit a record high of Rs 215.90 on 29 January 2018. The stock had hit a 52-week low of Rs 62.10 on 28 September 2017.

The small-cap company has equity capital of Rs 21.39 crore. Face value per share is Rs 10.

The board of directors of Omax Autos approved the proposal for diversification and expansion of existing capacity for manufacturing products and equipment supplied to railways. The rationale is more effective utilization of resources and expansion of revenue streams.

Omax Autos said that existing capacity is converting approx. 4800 tons per annum of steel into various parts and equipment required by railways. Existing capacity utilization is 90 - 100 %. Existing capacity is proposed to be doubled within two to three years, in phases. The investment required is Rs 100 crore to Rs 120 crore to be financed from disposal of existing surplus assets, internal accruals and external borrowings.

Omax Autos reported net profit of Rs 13.17 crore in Q4 March 2018 as compared with net loss of Rs 0.32 crore in Q4 March 2017. Net sales rose 31.24% to Rs 339.40 crore in Q4 March 2018 over Q4 March 2017.

Omax Autos is one of the leading manufacturers of auto and non-auto components in India. The company specializes in sheet metal components, tubular components and machined components.

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