Pipavav Defence gains after bagging new order

The announcement was made during trading hours today, 22 May 2013.

Meanwhile, the BSE Sensex was up 35.08 points, or 0.17%, to 20,146.69.

On BSE, 1.99 lakh shares were traded in the counter as against an average daily volume of 5.91 lakh shares in the past one quarter.

The stock hit a high of Rs 72 and a low of Rs 69.15 so far during the day. The stock had hit a 52-week high of Rs 98.35 on 13 December 2012. The stock had hit a 52-week low of Rs 52.65 on 27 July 2012.

The stock had underperformed the market over the past one month till 21 May 2013, sliding 5.83% compared with the Sensex's 5.76% rise. The scrip had also underperformed the market in past one quarter, sliding 17.33% as against Sensex's 4.07% rise.

The mid-cap company has an equity capital of Rs 711.70 crore. Face value per share is Rs 10.

Pipavav Defence and Offshore Engineering Company said the value of the order is worth Rs 595 crore, with an option to supply two more specialised offshore ships valued at Rs 1200 crore.

Pipavav added that overall demand for similar specialised offshore ships in the global market is nearly $10 billion per year. The company said its offshore division is constantly increasing the clientele in the global market.

The company said it intends to increase its market share in the offshore segment substantially over the next four quarters.

Net profit of Pipavav Defence & Offshore Engineering Company declined 28.01% to Rs 10.05 crore on 34.18% rise in net sales to Rs 619.07 crore in Q3 December 2012 over Q3 December 2011.

Pipavav Defence and Offshore Engineering Company is a leading company in the Indian Defence sector. It is involved in the business of naval shipbuilding, repair & dry-docking and has the capability to build all types of assets required by the Indian Navy and the Indian Coast Guard.

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