Rane Engine Valve jumped 7.25% to Rs 763 at 14:30 IST on BSE after the company reported net profit of Rs 61.90 crore in Q2 September 2016 compared with net loss of Rs 12.50 crore in Q2 September 2015.
The result was announced during market hours today, 21 October 2016.Meanwhile, the S&P BSE Sensex was down 154.84 points or 0.55% at 27,975.
High volumes were witnessed on the counter. On BSE, so far 71,944 shares were traded in the counter as against average daily volume of 6,686 shares in the past one quarter. The stock hit a high of Rs 794 and a low of Rs 700.10 so far during the day. The stock hit a record high of Rs 807.45 on 15 September 2016. The stock hit a 52-week low of Rs 442 on 12 February 2016. The stock had outperformed the market over the past one month till 20 October 2016, rising 6.9% compared with 1.38% decline in the Sensex. The scrip had also outperformed the market in past one quarter, jumping 55.34% as against Sensex's 0.77% rise.
The small-cap company has equity capital of Rs 6.72 crore. Face value per share is Rs 10.
Rane Engine Valve's total operating income rose 4% to Rs 90.70 crore in Q2 September 2016 over Q2 September 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) margin rose to 2.3% in Q2 September 2016 from 1.8% in Q2 September 2015.
L Ganesh, Chairman of Rane Group said that the company continued to improve its operational performance. The debottlenecking efforts to improve plant production helped it to capitalize on strong demand in select market segments. The company was able to reduce the operational loss with focused efforts on material cost reduction, and stringent fixed cost reduction. These initiatives will continue in the upcoming quarters to improve operational efficiency and deliver profitable growth.
Rane Engine Valve manufactures engine valves, valve guides and tappets for various IC engine applications.
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