The company announced the cut in production after trading hours on Tuesday, 25 November 2008.

Meanwhile, the BSE Sensex was up 47.95 points, or 0.55%, to 8,743.48.

On BSE, 469 shares were traded in the counter. The stock had an average daily volume of 9,940 shares in the past one quarter.

The stock hit a high of Rs 30.35 and a low of Rs 27.40 so far during the day. The stock hit a 52-week high of Rs 195.50 on 4 January 2008 and a 52-week low of Rs 26.50 on 20 November 2008.

The small-cap stock had underperformed the market over the past one month till 25 November 2008, declining 24.34% as compared to the Sensex's decline of 0.06%. It had also underperformed the market in the past one quarter, declining 60.64% as compared to the Sensex's decline of 39.82%.

The company's current equity is Rs 17.40 crore. Face value per share is Rs 10.

The current price of Rs 27.55 discounts the company's Q2 September 2008 annualized EPS of Rs 12.07, by a PE multiple of 2.28.

A fall in demand for castings from the automobiles industry has resulted in increase of inventories, Nelcast said. Hence the company has reduced production at both Gudur and Ponneri plants. The production cut will continue until the demand picks up.

The company manufactures castings for automotive industry, farm equipment industry, railways and pipe fitting industries. The manufacturing plants are located at Gudur in Andhra Pradesh and Ponneri in Tamil Nadu. The company also exports its products to USA, Europe and Australia.

Nelcast's net profit fell 16% to Rs 5.25 crore on 30.2% increase in net sales to Rs 100.36 crore in Q2 September 2008 over Q2 September 2007.