KPIT Cummins Infosystems gains as board approves bonus, stock split
KPIT Cummins rose 0.55% to Rs 602 on getting its board’s approval for bonus issue and stock split.
The counter clocked a volume of 52,458 shares on the BSE.The stock witnessed a solid spurt in the past few trading sessions, on announcement of stock split and bonus issue. From Rs 450.45 on 20 October 2006, the stock surged to Rs 621.30 by 2 November 2006. From this level, it had slipped to Rs 598.70 by 7 November 2006.
At the current market price of Rs 602, KPIT Cummins is trading at 22.37 times its Q2 September 2006 annualized EPS of Rs 26.90 (based on consolidated earnings).
KPIT Cummins Infosystems’ board has approved the issue of bonus shares in the ratio of 1:1, i.e. one bonus equity share for each equity share held in the company. Further, the board has also approved to split the existing par value of Rs 5 per equity share into Rs 2 per equity share.
Recently, KPIT Cummins has set up a dedicated offshore development centre to offer design and development services for Japanese semi-conductor systems solutions firm, Renesas Technology. Renesas, a joint venture of Hitachi and Mitsubishi Electric, is an existing top-five client of KPIT Infosystems and accounts for a little less than 10% of the latter's revenues.
KPIT Cummins Infosystems is a global IT consulting and engineering company with major presence in IT for manufacturing, advanced technology solutions and diversified financial services verticals.
In Q2 September 2006, KPIT incorporated a wholly owned subsidiary in Poland with an initial investment of about $250,000 and it also setup a branch office in Singapore.
For Q2 September 2006, the company reported 13% growth in net profit to Rs 7.02 crore (Rs 6.21 crore). Net sales rose 13.70% to Rs 73.29 crore (Rs 64.47 crore).
The counter clocked a volume of 52,458 shares on the BSE.The stock witnessed a solid spurt in the past few trading sessions, on announcement of stock split and bonus issue. From Rs 450.45 on 20 October 2006, the stock surged to Rs 621.30 by 2 November 2006. From this level, it had slipped to Rs 598.70 by 7 November 2006.
At the current market price of Rs 602, KPIT Cummins is trading at 22.37 times its Q2 September 2006 annualized EPS of Rs 26.90 (based on consolidated earnings).
KPIT Cummins Infosystems’ board has approved the issue of bonus shares in the ratio of 1:1, i.e. one bonus equity share for each equity share held in the company. Further, the board has also approved to split the existing par value of Rs 5 per equity share into Rs 2 per equity share.
Recently, KPIT Cummins has set up a dedicated offshore development centre to offer design and development services for Japanese semi-conductor systems solutions firm, Renesas Technology. Renesas, a joint venture of Hitachi and Mitsubishi Electric, is an existing top-five client of KPIT Infosystems and accounts for a little less than 10% of the latter's revenues.
KPIT Cummins Infosystems is a global IT consulting and engineering company with major presence in IT for manufacturing, advanced technology solutions and diversified financial services verticals.
In Q2 September 2006, KPIT incorporated a wholly owned subsidiary in Poland with an initial investment of about $250,000 and it also setup a branch office in Singapore.
For Q2 September 2006, the company reported 13% growth in net profit to Rs 7.02 crore (Rs 6.21 crore). Net sales rose 13.70% to Rs 73.29 crore (Rs 64.47 crore).
posted by SY at 3:58 PM
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