Pennar Industries crawls up on plans to set up JV

Pennar Industries rose 2.18% to Rs 56.20 at 11:40 IST on BSE after the company said that Pennar Engineered Building Systems and the company intend to set up a 50:50 joint venture in United States of America.

The announcement was made after market hours yesterday, 15 June 2017.

Meanwhile, the S&P BSE Sensex fell 6.04 points or 0.02% to 31,069.69. The S&P BSE Small-Cap index rose 44.21 points or 0.28% to 15,690.10.

On the BSE, 62,673 shares were traded in the counter so far, compared with average daily volumes of 1.34 lakh shares in the past one quarter. The stock had hit a high of Rs 56.80 and a low of Rs 55.80 so far during the day. The stock had hit a 52-week high of Rs 58 on 13 June 2017. The stock had hit a 52-week low of Rs 39.50 on 21 November 2016.

The stock had outperformed the market over the past one month till 15 June 2017, rising 12.36% compared with 2.49% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 27.61% as against Sensex's 5.71% rise. The scrip had outperformed the market in past one year, gaining 24.72% as against Sensex's 16.27% rise.

The small-cap company has equity capital of Rs 60.17 crore. Face value per share is Rs 5.

Pennar Industries said that the company and Pennar Engineered Building Systems intend to set up a 50:50 joint venture (JV) in United States of America to supply their goods and services.

The JV will help both the companies to increase their addressable market and contribute to an increase in revenue and profitability.

On 13 June 2017, the company had said it received orders worth Rs 255 crore.

On a consolidated basis, net profit of Pennar Industries rose 10.8% to Rs 18.02 crore on 32.6% rise in net sales to Rs 464.87 crore in Q4 March 2017 over Q4 March 2016.

Pennar Industries offers specialized, engineered steel solutions. The company has a strong presence across growth sectors in India through four business units, steel products, tubes, industrial components and systems & projects, and its subsidiary companies, Pennar Engineered Building Systems, Pennar Renewables and Pennar Enviro.

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