Ingersoll Rand soars 44%

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Ingersoll Rand gained 44 per cent during the week as the company announced that its board of directors will meet on March 24, 2009 to consider a buyback of equity shares. The trading volumes spurted manifold on the exchanges on new of the buyback.

The shareholding data shows that promoters hold 74 per cent, while individual investors are the second-largest shareholders at 16.4 per cent. Financial institutions hold 6.22 per cent, while the remaining 3.38 per cent stake is held by corporate bodies.

The stock was trading at a price-to-earnings multiple of 8.41, and price-to-book value of 0.93 a week ago. The ratio has now increased to 12.14 and 1.33, respectively, as the stock has firmed up from Rs 204.75 a week ago to Rs 295.55 now.

 

The company has cash in hand worth Rs 570 crore, including a cash balance of Rs 516 crore and net profit of Rs 54 crore earned during the nine months ended December 2008.