The stock declined sharply from its recent peak of Rs 75.25 on 09 January 2006, to close at Rs 62.80 on 02 February 2006, on profit- booking.

Sona Koyo Steering Systems spurted today after it announced an investment plan of Rs 400 crore to take place over a period of four years. The group also announced the setting up of Sona AutoComp Inc, USA, a joint venture of all the group companies and unveiled its new visual identity.

The company will invest in capacity expansion of its facilities and setting up units at new locations. The expected layout of the proposed investment would result in a total capacity of 3 million pieces of manual steering gears, 5 lakh of hydraulic power steering gears, 2.5 lakh of EPS (Electronic Power Steering) and double the present capacity for steering columns from 1-2 million parts.

Sona Koyo Steering Systems is India’s largest steering systems manufacturer and supplier. It has a technical and financial collaboration with Koyo Seiko Co, Japan, which holds 20.47% stake in the company.

Sona Koyo Steering’s Q3 results were weak. Net profit fell 5.3% to Rs 3.97 crore. Sales increased 4.9% to Rs 81.41 crore.