Pipavav Defence hits the roof on bargain hunting

Pipavav Defence and Offshore Engineering Company hit an upper circuit limit of 5% at Rs 42.65 at 11:31 IST on BSE on bargain hunting after a recent slump in share price.

Meanwhile, the BSE Sensex was up 524.61 points, or 2.72%, to 19,794.67.

On BSE, 22,000 shares were traded in the counter compared with average volume of 3.18 lakh shares in the past one quarter.

The stock opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level at Rs 42.65 so far in the day.

The stock hit a record low of Rs 40.65 on Friday, 6 September 2013. The stock hit a 52-week high of Rs 98.35 on 13 December 2012.

Shares of Pipavav Defence and Offshore Engineering Company slumped 38.17% in the preceding 16 trading sessions to Rs 40.65 on 6 September 2013 from a recent high of Rs 65.75 on 14 August 2013.

The stock had underperformed the market over the past one month till 6 September 2013, sliding 38.73% compared with the Sensex's 2.87% rise. The scrip had also underperformed the market in past one quarter, falling 40.83% as against Sensex's 1.28% fall.

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

On 29 August 2013, Pipavav Defence and Offshore Engineering Company announced that a consortium of the company and L&T has bagged an order worth over $170 million from ONGC. Pipavav Defence also said that the order book of the company had crossed Rs 12000 crore.

Net profit of Pipavav Defence & Offshore Engineering Company surged 260.40% to Rs 7.28 crore on 22.17% rise in net sales to Rs 699.29 crore in Q1 June 2013 over Q1 June 2012.

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

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