Shares of Nitin Fire soars after Amitabh Bachchan's Rs 6 crore investment

Shares of Nitin Fire Protection Industries gained for the 4th day in a row after celebrity filmstar Amitabh Bachchan invested close to 6 crore rupees in its shares.

Nitin Fire hit its highest level in 10 months as investors' enthusiasm continued unabated after Mr. Bachchan purchase. The stock was up 3.95 rupees, or 7 percent, to 55.40 rupees on the National Stock Exchange where 24.5 lakh shares were traded compared with a 5-day average of 18.2 lakh shares.

Nitin Fire expects its sales to grow 20-25 percent each year over the next couple of years and the expansion in profit will exceed that percentage, the management said. Nitin Fire is also hopeful of operating margins rising 100-150 bps each year over the same time period.

It gets a majority of its sales from the UAE, Middle East and African geographies and hopes to target the US market in a couple of years. Nitin Fire has no plans to raise funds in the shorter term.

The company's market capitalisation has gained a modest 13 percent to 1,581 crore rupees in the past one year. The stock trades at 3.4 times its book value of 15 rupees.

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