Nitin Fire Protection Industries rose 1% to Rs 41.20 at 15:04 IST on BSE after the company said its board unanimously approved diversifying its fire protection business into defence sector.
The announcement was made during trading hours today, 9 March 2015.
Meanwhile, the BSE Sensex was down 544.65 points, or 1.85%, to 28,904.30.
On BSE, so far 5.46 lakh shares were traded in the counter, compared with an average volume of 2.35 lakh shares in the past one quarter.
The stock was volatile. It rose 4.17% at the day's high of Rs 42.50 so far during the day. It fell 1.35% at the day's low of Rs 40.25 so far during the day.
The stock hit a record high of Rs 66.75 on 3 July 2014. The stock hit a 52-week low of Rs 30.15 on 2 December 2014.
The stock had outperformed the market over the past one month till 5 March 2015, rising 20% compared with 2.07% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 24.39% as against Sensex's 3.48% rise.
The small-cap company has an equity capital of Rs 58.45 crore. Face value per share is Rs 2.
Nitin Fire Protection Industries said its board formally agreed to move forward for promoting its product range into Ministry of Defence. This move to promote the company's product in defence shall give a bigger advantage and its entry into a large opportunity of fire protection for defence sector will give boost to company's performance. The board has also agreed to consider this proposal and if required may also look at forming a SPV (special purpose vehicle) for this sector considering the size and opportunity of the same, the company said in a statement.
The company said it recently received UL (Underwriters' Laboratory) approval for its products which will further strengthen its entry to defence sector. It is the only company in this segment to have this kind of approval which gives it mileage to promote its product in defence sector, the company added.
The company's chief, Nitin Shah said, "Defence is the biggest thrust area for our product and Government policy of 'Make in India' policy make companies move to enter into defence area is more viable. We are focusing more onto our R&D work to develop more viable product for this area. We are looking for 'Organic and Inorganic way' to grow in this sector and looking for good opportunity to take over an acquisitions."
On a consolidated basis, net profit of Nitin Fire Protection Industries rose 394.41% to Rs 21.21 crore on 468.49% rise in net sales to Rs 400.16 crore in Q3 December 2014 over Q3 December 2013.
Nitin Fire Protection Industries provides fire detection and fire suppression systems, and manufactures fire extinguishers. It is an end-to-end solution provide with wide range of products ranging from basic level fire extinguisher to sophisticated fire protection systems and gas based suppression systems. It undertakes turnkey contracts in terms of providing fire protection for critical assets like oil refineries, power plants, offshore platforms, nuclear plants, submarines, server rooms and data centres. It is a complete fire protection solution provider where we do designing, installation, testing commissioning all under one roof. We are a one stop solution provider for all the fire protection requirements possible.
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