Pipavav Defence gains on bargain hunting

Pipavav Defence and Offshore Engineering Company rose 5.40% to Rs 53.80 at 13:31 IST on BSE on bargain hunting after the stock fell 10.14% in the preceding four trading sessions.

Meanwhile, the BSE Sensex was down 10.52 points, or 0.04%, to 28,065.03.

On BSE, so far 17.80 lakh shares were traded in the counter, compared with an average volume of 8.08 lakh shares in the past one quarter.

The stock hit a high of Rs 54.75 and a low of Rs 50.20 so far during the day. The stock hit a 52-week high of Rs 73.90 on 6 June 2014. The stock hit a record low of Rs 30.55 on 4 February 2014.

Shares of Pipavav Defence and Offshore Engineering Company (Pipavav Defence) fell 10.14% in the preceding four trading sessions to Rs 50.95 on 15 January 2015, from a recent high of Rs 56.70 on 9 January 2015.

The stock had outperformed the market over the past one month till 15 January 2015, rising 18.63% compared with 2.77% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 16.32% as against Sensex's 6.55% rise.

The mid-cap company has an equity capital of Rs 736.21 crore. Face value per share is Rs 10.

Some recent media reports suggested that lenders to Pipavav Defence & Offshore Engineering, the country's largest shipbuilding and heavy industry company, have chosen the corporate debt restructuring (CDR) route to restructure its debt of close to Rs 7000 crore.

Pipavav Defence & Offshore Engineering Company reported net loss of Rs 68.33 crore in Q2 September 2014 as against net profit of Rs 4.54 crore in Q2 September 2013. Net sales declined 74.13% to Rs 208.17 crore in Q2 September 2014 over Q2 September 2013.

Pipavav Defence is an integrated defence, heavy engineering and offshore oil & gas assets construction company.

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