Tata Elxsi rose 1.27% to Rs 1,396.30 at 11:21 IST on BSE after the company's key client Panasonic Corporation said it will establish the design division in Bangalore in April 2017 in partnership with the company.
The announcement was made after market hours yesterday, 7 December 2016.Meanwhile, the S&P BSE Sensex was up 353.57 points or 1.35% at 26,590.44.
On the BSE, 29,000 shares were traded on the counter so far as against the average daily volumes of 75,772 shares in the past one quarter. The stock had hit a high of Rs 1,405 and a low of Rs 1,384.50 so far during the day.
The stock had hit a record high of Rs 2,396 on 2 February 2016 and a 52-week low of Rs 1,021.65 on 21 November 2016. It had outperformed the market over the past one month till 7 December 2016, surging 11.86% compared with the Sensex's 4.45% fall. The scrip had, however, underperformed the market in the past one quarter, declining 10.69% as against the Sensex's 9.3% fall.
The mid-cap company has equity capital of Rs 31.14 crore. Face value per share is Rs 10.
Panasonic Corporation announced that it will start the local production of refrigerators and strengthen its R&D functions. It aims to expand its appliances business in India by accelerating the Iocalizing, production and sales activities to develop products that match the local needs.
Keeping in mind the rising demand for valueadded refrigerators, the new factory will be built at Technopark, Jhajjar, Haryana and will be operational starting November 2017.
Sales from the said factory will commence from April 2018 in India. The company will establish the design division in Bangalore in April 2017 in partnership with Tata Elxsi. Through this division it will develop technologies such as artificial intelligence and robotics applicable to appliance products not only for India but also for Japan and global markets.
Tata Elxsi's net profit rose 13.1% to Rs 43.08 crore on 15% growth in net sales to Rs 303.29 crore in Q2 September 2016 over Q2 September 2015.
Tata Elxsi is a global product engineering services provider that works with leading original equipment manufacturers (OEMs) and semiconductor companies across consumer electronics, broadcast, wired and wireless communications and automotive verticals.
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