The Nelco stock witnessed active trading today on rumours that the company is set to receive a huge defence order.
On the Bombay Stock Exchange (BSE), the stock hit the 20 per cent upper limit at Rs 57.40, a new 52-week high. The stock settled lower at Rs 55.35. More than 19.72 lakh shares were traded at the counter. On the National Stock Exchange, the stock settled up 14.51 per cent at Rs 55.65 with more than 24.75 lakh shares changing hands.
The company had bagged a Rs 100 crore order from the Defence ministry for unmanned intrusion detectors in March 2002. Nelco was the first private sector company to receive such an order from the government.
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Earlier, the products were sourced from state-owned Bharat Electronics, Electronics Corporation of India and Hindustan Aeronautics. The products manufactured by Nelco would be used in monitoring the India-Pakistan border.
Nelco has staged a turnaround in the third quarter ended March 31, 2002. It registered a net profit of Rs 14.87 crore compared with Rs 18.80 crore in the corresponding period last year.
However, net sales jumped by 447.2 per cent to Rs 74.09 crore from Rs 13.54 crore. In the last quarter ended December 31, 2001, Nelco posted a net loss of Rs 6.05 crore.
Nelco had recently introduced tele-banking in nationalised banks and computerised more than 65 branches of 28 banks all over India. It also introduced India's first local area network inter-connectivity products. It has technical collaboration/technical transfer agreements with Serck Control of the UK for 16 RIT industrial micro computers; and with Teleglobe, Canada, for data communication networks.