The company made this announcement during trading hours on Thursday, 11 March 2010, when the stock had plunged nearly 6% to Rs 376.35.
Meanwhile, the BSE Sensex was up 42.46 points, or 0.25% to 17,210.42.
On BSE, 30,255 shares were traded in the counter as against an average daily volume of 1.11 lakh shares in the past one quarter.
The stock hit a high of Rs 377.80 and a low of Rs 366 so far during the day. The stock had hit a 52-week high of Rs 421.60 on 10 March 2010 and a 52-week low of Rs 116 on 12 March 2009.
The stock has fallen 8.25% in just two trading sessions from a recent high of Rs 400 on 10 March 2010.
The small-cap stock had outperformed the market over the past one month till 11 March 2010, gaining 8.41% as compared to the Sensex's 6.29% rise. It had also outperformed the market in the past one quarter, rising 28.91% as compared to the Sensex's return of 0.29%.
The company's equity capital is Rs 12.60 crore. Face value per share is Rs 10.
The current price of Rs 367 discounts the company's Q3 December 2009 annualized EPS of Rs 16.83, by a PE multiple of 21.81.
Nitin M Shah, Chairman & Managing Director and also a promoter of the company has pledged shares with Axis Bank for various credit facilities availed by the firm, the company said in a filing with BSE.
The total promoter shareholding in the company is 70.15% (as on 31 December 2009).
The issue of pledged shares has gained importance after it was discovered that the entire promoter stake of the fraud-hit Satyam Computers was pledged with various financial institutions. Securities & Exchange Board of India (Sebi) has since made it mandatory for companies to disclose details related to pledge shares.
There are fears that the lenders may dump the pledged shares if the promoters fail to repay the loan.
Nitin Fire Protection Industries' net profit declined 4.5% to Rs 5.30 crore on 311.7% surge in net sales to Rs 38.74 crore in Q3 December 2009 over Q3 December 2008.
Mumbai-based Nitin Fire Protection Industries is a leading end-to-end solution provider for fire protection, safety and security with capabilities in manufacturing, designing, engineering, commissioning and maintenance.