Subros was locked at 5% upper circuit at Rs 51.75 at 13:45 IST on BSE after the company entered into a Memorandum of Understanding with Denso Corporation Japan to produce engine cooling module and standard radiator.
The announcement was made during market hours today, 4 September 2014.
Meanwhile, the BSE Sensex was down 149.03 points, or 0.55%, to 26.990.91
On BSE, so far 38,000 shares were traded in the counter as against an average daily volume of 61,930 lakh shares in the past one quarter.
The stock had outperformed the market over the past one month till 2 September 2014, rising 15.73% compared with 6.04% rise in the Sensex. The scrip had also outperformed the market in past one quarter, advancing 35.63% as against Sensex's 9.46% rise.
The small-cap automobile air-conditioning systems maker has an equity capital of Rs 12 crore. Face value per share is Rs 2.
Subros entered into a Memorandum of Understanding (MoU) with Denso Corporation Japan wherein Denso intends to entrust production of Engine Cooling Module and Global Standard Radiator in India to Subros. The location of entrustment production would be Subros Manesar plant. Start of production is intended December 2015, Subros said.
It has an annual sales potential of Rs 200 crore approximately and will entail an additional investment of approximately Rs 48 crore spread over next 3 years, Subros said.
Subros reported 13.1% rise in net profit to Rs 3.29 crore on 2.9% rise in total income to Rs 288.83 crore in Q1 June 2014 over Q1 June 2013.
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