ISMT spikes up over 2.5%

Small cap stock, ISMT, which makes specialized seamless tubes is currently up over 2.5% at Rs.12, closer to its intra day high at Rs.12.45. Volumes have jumped up over 2.2 times.

The stock is up after the company announced today that it has settled an arbitration case wherein it will receive a payment of Euro 15.5 million from one of its equipment suppliers.

Financially, the company has not been on a strong wicket as it had ended Q3FY14 with a net loss of Rs.88 crore, more than double the loss of Rs.36 crore it had posted in Q3FY13. Hopefully, this payment will add to a one-time gain and we might see a ‘turnaround’.