Arcotech 'mints' a new order

Arcotech is a Haryana based company, manufacturing Copper as well as copper alloys products and aluminium products like Plates/Bars, sheets, strips, foils and rods. It was earlier known as Shri Krishna Strips, which is later changed to SKS Ltd and now Arcotech.

The company announced yesterday after market hours that it has received an rode from the India Government Mint, Mumbai for supply of 6000 MT Nickel Brass Coils worth Rs. 268.30 crore. This has an added option of scaling up the order by another 25%, which then would mean that te order is worth Rs.335 crore.

The company had ended Q2FY16 with a 19% (YoY) rise in net sales at Rs.182 crore and net profit of Rs.9 crore, up 12%. Its equity stands at Rs.21 crore and market cap of over Rs.750 crore. Promoters hold 74.98% stake with FIIs having 9.73% holding. Obviously, the company is a big beneficiary of the falling copper prices and going forward we could see margins improve.

The stock is reacting positively to the order receipt news. It opened 9% higher, its intra day high point, at Rs.373.90 and is now at Rs.361 levels, up 5%. Volumes though remain muted at 15,000 shares.