Moser Baer hit a high of Rs 235 on Friday on reports that it has got an additional order from an existing US client.
The scrip of the floppy compact disc maker moved a little lower later, but was still up 1.3% to Rs 233.25. Around 117,000 Moser Baer shares changed hands on BSE in just an hour's trading.
The scrip witnessed some deal of oscillation, after rallying from an early 2003 low, over the last few trading sessions. The scrip surged early this year after the European Commission decided to terminate anti-dumping proceedings against the company with respect to the manufacture of recordable compact disks. From Rs 151.30 on 2 January 2003, it jumped 52.9% to Rs 231.40 on 7 February 2003.
The rise on the counter manifests on reports that the company, which is expanding its presence in the US markets, has bagged a large order for supply of CD-Recordables from US based Imation Corp. Imation Corp is an existing client of MBIL.
MBIL is one of the world's largest manufacturers of optical and magnetic data storage products.
Late January 2003, MBIL said it was considering a price hike in Q4 ending 31 March 2003 subsequent to the improving market dynamics and favorable outcome of the anti-dumping investigations, MBIL said. So far, the company's current year's performance has been affected by pressure on profit margins which in turn has been due to a fall in product prices.
For Q3 ended 31 December 2002, MBIL posted a 7.8% rise in net profit to Rs 64.88 crore on a 74% growth in total income to Rs 297.91 crore (Rs 2.97 billion). MBIL has maintained guidance of a 10% growth in earnings for FY 2002-03.
The December 2002 quarter proved satisfactory for Moser Baer from the DVDR point of view, as it had seen about a 300% growth in shipments to 700,000 units. The company expects a majority of DVDR shipments for the year to take place during the current quarter. It expects volumes during the fourth quarter to be about three times the volumes in the preceding three quarters. It continues with its guidance for the full year of 6-8 million units of DVDR shipments .
On 20 January 2003, MBIL clarified that it had an exposure of about Rs 3 crore to Emtec Consumer Media and it had no business with Emtec Magnetics which has filed for reorganization and insolvency protection.
More Hot Pursuits