ST Engg

ST Engg: its unit ST Kinetics' advanced generation all-terrain 8x8 armoured personnel carrier, TERREX, has been accepted by the US Marine Corps for the demonstration and studies phase of the Marine Personnel Carrier (MPC) programme. The MPC programme is part of a consortium led by Science Applications International Corporation (SAIC), an American defence company based in Virginia. The US Marine Corps is planning for a new fleet of 579 MPC vehicles. While this serves as validation of STE’s pdt, any contract could take time to deliver. ST Kinetics said the SAIC team will be supplying a customised version of the TERREX and basic hulls to be put through 12 months of performance trials and testing. The trials cover areas of mobility, swimming capability, troop-carrying capacity and survivability. Besides the TERREX, the other three vehicles to be trialed for the programme are from Lockheed Martin, BAE Systems and General Dynamics Land Systems. STE trades at 19.5x P/E, 4.3% yield.