Encouraged by ongoing talks for new orders, the share price of National Radio & Electronics Company (Nelco) a hit 52-week high of Rs 23.50. The share slipped later to close at Rs 21.70 on the Bombay Stock Exchange (BSE).
The company, from the Tata stable, is supplier of ultra ground sensors (UGS) to the defence ministry and has received order worth Rs 100 crore for supplying 162 UGS units, analysts said.
The stock has increased more than 123 per cent since January 1 from Rs 9.75.
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"The product is supposed to be one of its kind incorporating state-of-the-art technology with raw inputs sourced from Israel," a broker said.
According to market sources, the order is currently under execution, with talks of two more orders worth Rs 50 crore each in the pipeline. UGS helps in identifying objects including living beings accurately on the borders, analysts said.
According to market players, Nelco, in technology collaboration with an Israeli company, would be supplying scanners to the Indian Army, which can spot the presence of human beings from a distance.
Moreover, with the government opening up the defence sector, Nelco seems to be in a position to leverage the opportunity, dealers said.
The company has technology tie-ups with Eagle Telonics and Avtron, US; strategic alliances with GE and GE Harris Controls, US; Hitachi, Japan; and Raytheon, US. It has promoted Nelito Systems, a joint venture between Nelco and Itochu of Japan.
The company was established in 1940 to manufacture electronic products for the Indian market. Later, the company expanded its operations to manufacture products used in industrial controls and power electronics.
It has also ventured into locomotive traction power controls, global positioning systems and intrusion detection and security systems.
The company manufactures supervisory control and data acquisition systems for energy management, load dispatch, and distribution and sub-station automation.
Nelco specialises in real-time software activities. It caters to diverse market segments such as the steel and metal industry, energy management, railways, and the oil and gas sectors. It has recently made forays into the defence sector. The company is based in Mumbai, with four manufacturing plants in Maharashtra. It has a countrywide sales and service network.