Lower Circuit Alert: Engineering Company Announces Completion of Empty Artillery Shell Plant & Machines Purchase from Non-Functioning Artillery Shell Manufacturing Company, T S Kisan & Co. P Ltd
The stock is up by 61 per cent from its 52-week low of Rs 361 per share.
On Tuesday, shares of Sunita Tools Ltd hit a 5 per cent upper circuit to Rs 581.50 per share from its previous closing of Rs 612.10 per share. The stock’s 52-week high is Rs 1,063.80 per share and its 52-week low is Rs 361 per share.
Sunita Tools Limited, a well-regarded engineering firm with a strong presence in the mould base, defence and aerospace sectors, has announced the successful acquisition of an empty artillery shell manufacturing plant and machinery. This significant purchase was made from T S Kisan & Co. P Ltd, a previously operational artillery shell manufacturer that supplied the Ministry of Defence. The acquisition includes the complete manufacturing plant, notably three critical hydraulic presses and a range of other essential machines required for the production line.
Currently, Sunita Tools Limited is undertaking a thorough overhaul, refurbishment and servicing of all the acquired machinery. This proactive step ensures that the equipment will be in optimal condition before the commencement of full-scale production to fulfil existing Letters of Intent. The company has strategically appointed Mr. Tarun Thapar as the Executive Director for this venture. His prior experience as the Production in-charge at TSK during its operational period provides invaluable expertise in the intricacies of the machinery, equipment and manufacturing processes involved in artillery shell production.
With this strategic acquisition of the plant, machinery and the appointment of a knowledgeable team leader, Sunita Tools Limited significantly strengthens its position within the defence and artillery industry. The enhanced capabilities now position the company to effectively address the growing demands of its clientele, with the capacity to manufacture not only standard 155mm shells but also various modifications of 155mm shells, 120mm mortars and potentially other artillery shells required by the sector.
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About the Company
Sunita Tools Limited, with over 30 years in the engineering and mould base sector (formerly Sunita Tools Private Limited), provides tailored solutions including ground plates, mould bases and precision CNC machining. These crucial components support automotive, pharmaceutical, electronics and consumer goods manufacturing. Located in Vasai, Mumbai, their manufacturing plant benefits from a strategic position within a developed industrial zone, facilitating resource access and logistics, thus offering a competitive edge. The facility boasts strong infrastructure, a skilled workforce and dependable utilities. Sunita Tools Limited highlights its capacity to deliver customised, high-quality products, offer expert advice during design and manufacturing and provide post-sales technical assistance.
The company has a market cap of over Rs 350 crore. The company's promoters own 67.18 per cent of the shares, while the remaining 32.82 per cent are owned by the public. The stock is up by 61 per cent from its 52-week low of Rs 361 per share.
Disclaimer: The article is for informational purposes only and not investment advice.