52-WEEK BLOCKBUSTER: NITIN FIRE PROTECTION

The stock of Nitin Fire Protection Systems surged 105 per cent in the last one year. The grant of State Government licence in 2011, to deal with fire prevention safety measures in Maharashtra, announcement of bonus shares and strong June quarter numbers were some of the key triggers for a rally in the stock.

Nitin Fire Protection provides a range of fire protection systems and solutions. It has approvals to operate in countries such as UK, US and Germany.

In order to focus on its high margin fire protection solutions segment, Nitin Fire Protection, in end 2010, divested a majority stake in its high pressure gas cylinder business. EBITDA margins have since then improved by 3-4 percentage points, to 17.7 per cent for the December 2011 quarter.

The company's sales, though, is susceptible to global slowdown as it receives anywhere between 65-80 per cent of its revenue from exports. Sales in recent quarters have been hit, with the December quarter consolidated revenue down from per cent to Rs 103.5 crore over a year ago. Net profits fell 35 per cent to Rs 11.7 crore.

However, recent measures by State governments to conduct safety audits in tall commercial and residential buildings in cities is expected to provide more business to approved players like Nitin Fire Protection.

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