Scripscan:Gontermann Peiper (India) Ltd
cmp:11
Code:504701
Story:Gontermann- Peipers (India) is very much in the news. The buzz around the stock is that its promoters, brothers, Vinod and Pramod Mittal, younger brothers of steel tycoon Lakshmi Narayan Mittal are scouting around for a buyer for the company, which makes rollers for steel mills. The Mittals own 56.13% stake in the company. The news is that they had approached Sajjan Jindal with a proposal for the buyout but it did not go through. But that is understandable given the company’s financial health, or rather, lack of health.In the first two quarters of the current fiscal, in Q1 and Q2, the company was in the red. It had posted a net loss of Rs.3.91 crore in Q1FY12 and in Q2FY12, the net loss was at Rs.2.90 crore. The fact that it remains in the low levels of around Rs.11 despite the news of possible sell out is due to the investors who are peeved at the company’s plans, which included an unrelated diversification into setting up a commodity bourse, announced a year back but not pursued in right earnest. It recently expanded its capacity by 5700 tonnes to 21,000 tonnes and the plant went on stream at Pailan in West Bengal. Though the company is fundamentally strong, being the the largest steel roll manufacturer, management is the cause for disenchantment. Keep a watch on the counter as buyout news could spike up the stock.
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