Sunita Tools touches the roof after its arm gets LoI for supply of Empty Artillery Shells
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Sunita Tools is currently trading at its upper limit of Rs. 836.00, up by 16.35 points or 1.99% from its previous closing of Rs. 819.65 on the BSE.
The scrip opened at Rs. 836.00 and has touched a high and low of Rs. 836.00 and Rs. 836.00 respectively. So far 4250 shares were traded on the counter.
The BSE group 'MT' stock of face value Rs. 10 has touched a 52 week high of Rs. 939.95 on 29-Jul-2024 and a 52 week low of Rs. 212.40 on 13-Feb-2024.
Last one week high and low of the scrip stood at Rs. 848.90 and Rs. 787.55 respectively. The current market cap of the company is Rs. 470.25 crore.
The promoters holding in the company stood at 72.98%, while Institutions and Non-Institutions held 0.06% and 26.96% respectively.
Sunita Tools’ subsidiary -- Tripathi Aerotech & Weapons Systems has received Letter of Intent (LoI) from a Major Defence products Supplier for supply of Empty Artillery Shells 155mm M107, 1,00,000 pieces per annum from Supply of trail samples. This Supply has to be completed within 1 year of Acceptance of trail samples. The customer has given 8 months to set up the project for starting manufacturing the item on desired large scale. However, the customer will accept trail samples and low volume batches supplied from present factory too in the meantime.
This acquisition of the Tripathi Aerotech and Weapons Manufacturing in turn Shigna Industrial corporation is Sunita Tools’ strategic vision to expand its portfolio of products related to Aerospace, Defence and Weapons Mfg and gives both the qualification as per net worth, Infrastructure, Technical expertise, past supply, Registered vendor with Defence establishments of Government of India and multi location manufacturing facility to take orders of Gun parts and Artillery Shell cases in huge numbers and size of Projects and accordingly as soon as Sunita Tools bought majority stake it became eligible for the Letter of Intent and will eventually get the order on completion of clauses to customers satisfaction.
This move propels Sunita Tools to leverage its 36 years technical expertise along with the acquisition partner to manufacture Gun Parts, Defence Parts, Artillery Shell case etc; which have a vast and huge market in India and Worldwide. Shigna Industrial Corporation and Tripathi Aerotech and weapons systems is registered as a vendor and works with various Defence & Ordnance Factory & establishments in India presently and its other subsidiary companies too have the facility to machine the products for this new LoI that’s an added advantage.
Sunita Tools has been in the Engineering and Mould base Industry for more than three decades providing one of its kind customized solutions to various industries.
