Otokar Surges Most in 3 Months on Defense Deal: Istanbul MoverTaylan Bilgic
Otokar Otomotiv ve Savunma Sanayi AS, a Turkish producer of civilian and military vehicles, surged the most in almost three months after it won a defense contract, boosting margin expectations.
The shares jumped 16 percent, the biggest advance since June 4, to 55 liras at the close in Istanbul. Almost 600,000 shares changed hands, about 1.8 times the stock’s three-month daily average, according to data compiled by Bloomberg. The Borsa Istanbul National 100 Index added 1.4 percent, rising for the first time in three days.
The company got a 227.9 million liras ($112 million) contract to supply armored tactical vehicles to the Turkish military, it said in a statement to Borsa Istanbul today. The size of the deal is equivalent to about a quarter of last year’s sales, data compiled by Bloomberg show. Deliveries will start this year and end in 2015, according to the statement.
“Otokar is among a handful of companies that play a prominent role in such military contracts,” Onur Marsan, an analyst at Garanti Securities, said by phone from Istanbul. “The contract will have a positive effect on sales and margins for the next three years.”
The company’s net income slipped to 28.8 million liras in the second quarter, from 30.6 million liras a year earlier, even as revenue surged 42 percent to 375 million liras, according to data compiled by Bloomberg.
The shares have slumped 14 percent this month, compared with a 9.5 percent drop in Turkey’s benchmark index. Three analysts recommended buying Otokar’s shares, while three others say sell, data compiled by Bloomberg show.