Bonus Declaration Props Sundaram Clayton

The company's results indicated it had recorded a 40 per cent increase in sales during the year and a 37.5 per cent growth in profit after tax. The net sales and other income for the period ended May 31, 1996 stood at Rs 180.59 crore as against Rs 101.82 crore last year, while the profit after tax for the year was Rs 26.57 crore.

It is certainly in the limelight for the right reasons. Apart from belonging to the Sundaram group, it is a scrip with sound fundamentals, says a senior dealer of DSP Financial, a leading institutional broking house.

 

The price of the stock on the National Stock Exchange (NSE) on Monday at Rs 342.10 was below the previous closing of Rs 360, while on the Bombay Stock Exchange (BSE) it was stable at Rs 335 which was the same as the previous close.

However, the stock began its climb on Tuesday when it opened strong at Rs 345, Rs 10 above the previous close on the BSE. On the NSE the opening price was Rs 344.95. It touched the day's high at Rs 348 before closing at Rs 347.90. Wednesday saw the price reach Rs 350 on both exchanges.

But on Thursday, the day after the board meeting the scrip saw maximum activity, it opened on a hefty Rs 35 above the previous close at Rs 385 on the NSE and touched Rs 386 before closing lower at Rs 383.50.

The trend was similar at the BSE where the closing price was Rs 381.50.

The week's last trading day witnessed activity in the scrip on the major bourses, though the prices in the stock declined, settling at Rs 375 on the BSE and Rs 367 .05 on the NSE.

Sundaram Clayton manufactures of air brake systems and components and caters mainly to the commercial vehicles segment. The company which has a current paid up equity capital of Rs 9.48 crore, 39 per cent of which is held by Clayton Devandre, is a subsidiary of American Standard of the US.