Thursday, February 01 + February 02, 2006
HEARD ON THE STREET
Nalco shines on divestment news
STRONG fund buying in metals and low inventories have boosted aluminium companies, including state-run Nalco. The shares extended their gains on reports that the government plans to sell 5% of its stake in the open market. Nalco rose 7.5% to Rs 305, while 9,13,933 shares were traded on the BSE.
Sirpur Paper Mills soars
PAPER maker Sirpur rose 20% to Rs 42.9 on reports that paper prices will rise sharply due to strong growth in demand. While volumes stood at 710 shares on the BSE, traders expect that buying in the stock will rise in the future.
Prism Cements rises on deal buzz
WHILE cement stocks have been up due to an industry-wise rise in January sales, the recent deal by Swiss major Holcim to buy 14.8% in Gujarat Ambuja has fuelled speculation of similar transactions in other cement companies. The Prism Cements stock, too, climbed 8.5% to Rs 22.2, with volumes at 1.25m shares on the BSE.
Source:-ET
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DCB plans to raise Rs 345cr through IPO, pref allotment
DEVELOPMENT Credit Bank (DCB) plans to raise Rs 345 crore of fresh equity capital through the combination of an IPO and preferential allotment. DCB CEO Gautam Vir told ET that the bank plans to raise Rs 250 crore through an IPO and Rs 95 crore by selling equity to a group of investors.
“We are hoping to launch the IPO after the Union Budget (in March),” he said. JM Financial and Enam Consultants have been appointed lead managers to the IPO. The bank has submitted a list of investors to the RBI for approval. The bank plans to place 22-25% with financial investors through the private placement.
At present, Aga Khan Fund for Economic Development (AKFED) owns 69% in DCB. AKFED’s holding will come down to around 33-35% after the IPO. As per the RBI guidelines on ownership in private sector ba-nks, a single entity cannot own more than 5% in a private bank. An investor’s holding can go up to 10% only with the RBI’s approval.
A significant part of the new capital will be utilised to writeoff bad loans. The bank currently has gross non-performing assets (NPAs) of 12.5% and net NPAs of 6.7%. It has a paid-up equity capital of Rs 66 crore.
In ’04, the bank had tried to sell a 12.9% equity to ChrysCapital. The deal was not cleared by RBI, after the authorities in Mauritius (where ChrysCapital was based) put an “adverse notice on ChrysCapital”.
DCB had reported a net loss of Rs 163 crore for FY05. The bank’s previous CEO HV Sheshadri resigned in March, after the RBI did not give him an extension. The bank appointed former MD of Infrastructure Development Finance Co Nasser Munjee as chairman. Mr Vir, an ex-Citibanker, who was earlier the CEO of Hebros Bank (Bulgaria), joined DCB as MD in September.
Source:-ET
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Zip drive: Wipro bags 5-year, $300-m GM deal
THE much-awaited announcement from the world’s largest car maker, General Motors (GM), on the award of its $15bn, IT outsourcing deal, is finally out. Wipro, the only Indian company to make the final short-list, has bagged an order worth $300m spread over a period of five years.
Wipro will be the only Tier 1 offshore service provider to GM. This is the second largest deal to be won by an Indian IT services firm, just short of the one bagged by HCL Technologies ($335m) recently. The others who have got large chunks of the GM deal are EDS, IBM, HP, Capgemini and Compuware Covisint. Of the 43 request for proposals (RFP) put forth by GM, four were bagged by Wipro Technologies. However, Wipro has bagged one project independently while the the other three are in partnership with EDS, the largest winner in the GM contract. EDS, in fact, was the incumbent in this deal.
Sudip Banerjee, president, enterprise solutions, Wipro Technologies, said that this contract has elevated Wipro to Tier 1 global systems integrator partner for GM over the next five years and puts it in a good position to win future business with the auto giant. GM has been a long time partner with Wipro and has generated over $30m revenues in the last four quarters for the company. The pricing of the contract has been in line with average pricing of Wipro and there will not be any dilution in the margins, Mr Banerjee said. The project is in the area of middleware system, while details of the other three projects are yet to be worked out with EDS. GM will spend about $15bn over the next five years.
Source:-ET
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‘Mukesh wants 20,000 acres for biotech project near Kolkata’
BARELY three months ahead of the assembly elections, West Bengal chief minister Buddhadeb Bhattacharjee dropped a bombshell on Thursday when he announced that Reliance Industries chairman Mukesh Ambani wants a staggering 20,000 acres of land near Kolkata to invest in a mega biotech venture.
Mr Bhattacharjee declined to spell out the proposed Reliance biotech project details, but top state circles close to developments at Reliance said the senior Ambani-controlled RIL was considering development of a sprawling special economic zone (SEZ) in the state where the proposed biotech project will be located. Subsequently, the project may involve the creation of a fullfledged industrial township to spur economic activity in the region.
“Mukesh Ambani has asked me for 20,000 acres of land for a large biotech project in the state,” Mr Bhattacharjee announced in the course of Ficci’s national executive committee meeting on Thursday. The request for a humongous 20,000 acres of land by Reliance is being attributed to the fact that any grandiose biotech project automatically entails the creation of a large botanical garden along with multiple marine laboratories and R&D facilities. Reliance Industries is officially silent on the issue. It is learnt, however, that the proposed biotech project may either be executed by the RIL-controlled Reliance Life Sciences or through a separate subsidiary that may be shortly floated to execute mega biotech ventures.
The latest developments come in the backdrop of RIL’s massive foray into real estate through the setting up of bustling special economic zones (SEZs). The company reportedly proposes to develop world-class townships close to existing metros that will eventually become buzzing zones of economic development over time. State circles are unwilling to comment on the possible investment levels that the Reliance biotech project will entail.
Incidentally, the state CM also indicated that Anil Ambani was scheduled to meet him on February 15 to discuss upcoming projects of the ADAE-controlled Reliance Infocomm in the state.
Not too long ago, the CM had voiced concern over the delay in execution of the much hyped Dhirubhai Ambani Institute of Information & Communication Technology (DAIICT) deemed university venture for which the state government has already offered 50 acres at Kalyani to DAIICT Society.
The project will be along the lines of the existing DAIICT university project in Gandhinagar. Besides the heavyweight Reliance announcements, Mr Bhattacharjee also indicated that the Tatas and Hindujas were close to finalising automotive ventures in the state. “Tatas have finally decided to set up an automotive project in Bengal. Things are also in the final stage for the auto project of the Hindujas,” he said.
Source:-ET
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Anil misses flight, drives to court over airport bid
THE government’s airport modernisation programme ran into trouble today with Reliance Airport Developers, an Anil Ambani Group company, filing a petition in the Delhi High Court against the selection of GMR-Fraport and GVK-South African Airports as partners for the Delhi and Mumbai airports, respectively. Reliance Airport had, in collaboration with ASA of Mexico, bid for both airports.
The methodology adopted in the selection of private sector partners for modernising the two airports was in violation of the tender conditions, the 155-page petition filed by Reliance said. Since the government and GMR-Fraport had filed caveats in the high court, they have been informed of the petition. It is understood that the petition would be taken up tomorrow in the Delhi High Court.
The case could turn into a long-drawn affair if the petition is admitted. Reliance Airport has named Airports Authority of India (AAI), the government (through the civil aviation ministry), GMRFraport and GVK-South African Airports as respondents. The contention of the ADA group is that, if the original tender process was followed, GMR would have got neither airports let alone definitely getting one, and with an option to choose between the two. It is learnt that Reliance Airport Developers will be represented by advocate Mukul Rohatgi, and is being advised by top-notch legal brain Fali Nariman.
ADA group is basically fighting the battle with the government on two counts: first, after the government has clearly specified tender conditions, it cannot go back and change the terms at the last minute. And that differential standards cannot be applied to GMR and Reliance Airport. After all, GMR has been selected as the partner for Delhi though Reliance’s financial bid was the best. The government had given GMR the chance to match the best financial bid since it was the only technicallyqualified bidder. Reliance Airport has said in its petition that it was the second best in terms of technical qualification. This should have won the Anil Ambani Group the right to match the best offer for the second airport and win the deal, if the government had applied the same criterion for both airports.
However, the government treated all bidders as the same in the case of the second airport since they were all rated as being below the technical qualification benchmark of 80%.
Airport recast: Govt files caveats
Our Delhi Bureau 2 FEBRUARY
RELIANCE Airport Developers has filed a petition in the Delhi HC against the selection of GMR-Fraport and GVK-South African Airports as partners for the Delhi and Mumbai airports, respectively. GVK won the Mumbai airport on the strength of its financial bid even though its technical ranking was far lower than that of Reliance. “The decision-making process in the present case has been completely discriminatory, arbitrary, and has been actuated by mala fides. It is a case of constantly shifting goal posts with the sole intent of benefiting certain parties while excluding the petitioner. The rules of the game have changed mid-course,” reads the petition, a copy of which is with ET.
It is understood that Reliance Airport has also written to the civil aviation secretary alleging a conflict of interest since AAI chairman K Ramalingam and civil aviation ministry joint secretary Sanjoy Narayan, both involved in the evaluation, were board members of Hyderabad International Airport, a joint venture between GMR and AAI. A similar communication has been set to members of the empowered group of ministers (eGOM) headed by defence minister Pranab Mukherjee, it is learnt. The eGOM had approved the selection process before it was cleared by the Cabinet. In a letter to finance minister P Chidambaram and copy to all members of the eGOM, Reliance has said: “These two persons have played an active role in the entire decision-making process.”
Civil aviation secretary Ajay Prasad said the government will go ahead with implementation of the Cabinet’s decision on the selection of partners. “We have received intimation about the petition and will file our reply with the court. Meanwhile, implementation of the policy decision will go on,” he said. While he declined to elaborate, stating that the case was sub judice, current indications are that the government will formally inform GMR and GVK of their selection. Follow-up action like initiation of technical agreements is also likely unless the court issues a stay order. The government has filed caveats in the SC and the Bombay HC, Mr Prasad said.
The 155-page petition chronicles the entire history of the evaluation process to seek scrapping of the selection of partners.
Source:-ET
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Sensex ends below 9,850 mark
The Sensex ended the day below 9,850 after oscillating 140 points either ways. Extensive selling happened near all-time high levels, preventing the Sensex from breaching the 10,000-mark.
The Sensex had hit an all-time high of 9993.92 on 01 February 2006.
The BSE Sensex advanced sharply by 682 points, from the close of 9237.53 on 18 January 2006 to close at 9,919.89.
The BSE Sensex ended the day at 9843.87 points, which is 15.39 lower than its previous close.
The NSE Nifty also ended the day with a loss of 4 points at 2967.45.
The Sensex opened with a positive gap of 32 points at 9,890.90, buoyed by resumption in FII-buying. On Tuesday (31 January 2006), FIIs lifted shares worth a net Rs 217.40 crore from the market, spreading cheer in opening trade.
The high and the low for the Sensex was at 9,956.10 andat 9,816.01 points respectively.
The total turnover amounted to Rs 3,340 crore while the market breadth was weak at 1:2.1. As many as 803 stocks advanced, 1,696 declined, while 53 remained unchanged.
The BSE Mid-cap index ended 0.30% higher while the BSE Small-cap index lost 0.70%.
The BSE Metal index advanced 1.95% while the BSE Healthcare index flared 2.25%.
Among the Sensex stocks, 14 moved higher as 16 dipped.
Cipla was the biggest gainer from the pack, up 11.35% to Rs 492, on a staggering 20.49 lakh shares, after the company scheduled a board meet for 11 February 2006 to discuss a bonus issue.
Bharti Televentures spurted 4.15% to Rs 365 on speculation of strong new subscription addition for the month of January 2006. HLL flared 1.2% to Rs 193.50
Ranbaxy added 2.3% to Rs 392.65 and Bhel gained 3% to Rs 1,847 on renewed buying after it reported robust Q3 results.
REL lost 1.2% to Rs 604.65 after its consortium failed to get a government contract to modernise the Delhi airport.
MTNL lost 0.4% to Rs 135 after its ADR lost 6% overnight on NYSE.
ONGC lost 2.1% to Rs 1195.95 on 7.69 lakh shares.
SBI was the top-traded counter on BSE, aggregating Rs 125.44 crore followed by Cipla with Rs 99.93 crore and RIL with Rs 98.63 crore.
Side-counters Sirpur Paper, Gujarat Alkali, Titanor Components, National Peroxide, Fortis Financial, Transcorp International, Alchemist, Gateway Distriparks, Jain Irrigation, Madhucon Projects, Amtek Auto, Cheviot and Prism cement among others surged.
KIC Metalics, Shetron, Raj Rayon, Tulip IT Services, Caprihans, Sacheta Metals and Roto Pumps, each slumped 10%
Nitin Spinners debuted today at Rs 28.05 on BSE. It ended at 26.20 – a 25% premium to issue price of Rs 21. It went on to hit a high of Rs 31 while its low was at Rs 25.30. The stock saw a huge volume of 1.82 crore shares.
Hexaware Technologies spurted 5.3% to Rs 130 after its Q4 December 2005 net profit increased 15.4% to Rs 24.75 crore (Rs 21.45 crore).
Commercial vehicles manufacturer, Ashok Leyland, surged 7.3% to Rs 34.45 after it bagged a Rs 230-crore order from the Indian army for supplying 872 specialised water carriers.
National Aluminium Company jumped 8.2% to Rs 307 tracking firm global aluminium prices with LME aluminium price hitting a 17-1/2 year high of $ 2,565 on Wednesday (1 February).
ACC flared 3.3% to Rs 593.90 after it reported a 10% rise in January despatches to 1.65 mt from 1.50 mt.
Jubilant Organosys rose 2.9% to Rs 1,069.90 after it bagged $ 40 million worth of contracts for custom-manufacturing of agrochemical intermediates and fine chemicals. The orders are from players who are leaders in pharmaceutical and agrochemical industry globally.
Mercator Lines closed at Rs 55.45 on 4.83 lakh shares after it went ex-bonus today in 3:2 (3 bonus shares for every two held). The stock had closed at Rs 141.75 yesterday.
JK Paper firmed 1.1% to Rs 60.65 following print media reports that International Finance Corporation (IFC) is likely to buy over 10% stake in the paper company.
United Phosphorous flared 4.7% higher to Rs 290 on reports that the company is eyeing acquisition in Europe in the range of $ 150-200 million.
Sterlite Industries jumped 8.75% to Rs 1,424 after it said its board will meet on 10 February 2006 to consider stock-split and a bonus issue.
Mather & Platt Pumps plunged 5% to Rs 190.05 after the company reported dismal Q3 December 2005 results. It posted a net profit of Rs 0.34 crore for the Q3 December 2005 compared to a net profit of Rs 1.14 crore in Q3 December 2004. Net sales rose 15.5% to Rs 23.64 crore (Rs 20.45 crore).
Jet Airways slipped 1.65% to Rs 921 on 2.62 lakh shares. The stock hit a new all-time low of Rs 891.15. NSE had banned further F&O positions in the stock yesterday.
Today’s Writing spurted 6.25% to Rs 77.35 on 3.20 lakh shares while KEC International jumped 10.54% to Rs 363 on 2.43 lakh shares.
Source:-www.capitalmarket.com
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Bharti Tele-Ventures rings in gain
Bharti Tele-Ventures surged today on renewed buying amid expectation of strong new subscription addition for last month..
Bharti Tele-Ventures (BTL) stock rose 4% to Rs 363.50 on 2.18 lakh shares on BSE.
The stock has bounced back from a lower level in the past few days. From a recent low of Rs 330.15 on 18 January, it had edged up to Rs 350.45 on 1 February 2006.
Over the past few months, the scrip has witnessed volatility due to alternate bouts of buying and selling. The scrip moved between Rs 312-373 since late October 2005.
At the beginning of every month, BTLs announces its subscription figure for the preceding month. Expectation of strong growth in cellular services subscribers will continue on the back of new schemes launched by cellular service providers.
BTL has been witnessing a solid growth in its cellular services. In December 2005, BTL added 9.11 lakh new subscribers, taking its total cellular subscription base to 163.27 lakh.
BTL's consolidated Q3 December 2005 net profit rose 25% to Rs 545.20 crore (Rs 436.30 crore). Revenue rose 42% to Rs 3,025.60 crore (Rs 2131.90 crore).
Source:-www.capitalmarket.com
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United Phosphorous in demand
United Phosphorous surged 2.8% to Rs 285 amid reports of the company’s acquisition plan in Europe.
As many as 1.17 lakh shares were traded on the BSE.
The scrip was hit by intra-day volatility as it moved between Rs 278- Rs 288.
The stock had spurted 10.6% on Wednesday (25 January) to Rs 290.60, boosted by media reports that it may come out with a bonus issue. But it lost 4.2% the next trading session to Rs 278.15 after the company said there was no such proposal pending before the board.
As per reports, United Phosphorous proposed acquisition deal in Europe could range from $ 150-200 million.
The company had registered a 54% increase in its Q3 consolidated net profit at Rs 23.14 crore. Sales rose 27% to Rs 383.80 crore.
In December 2005, the company’s shareholders had authorised the board to borrow money not exceeding a sum of Rs 3,000 crore and to make an international offering to collect $ 150 million in one or more tranches. The offering may be in the form of FCCBs or GDRs/ADRs or any other financial instrument, which the board may deem fit.
United Phosphorous had recently acquired 100 % stake of an Argentinian company, Reposo, in a deal worth $ 11 million. This includes the entire equity, including assets of the company, product registrations, manufacturing site and all other property rights associated with the businesses of the Argentinian firm.
United Phosphorus is a leading manufacturer of crop protection products with a wide-range that includes fumigants, fungicides, insecticides, rodenticides and herbicides. The company ranks fourth amongst the generic agrochemical companies in the world. It also manufactures chlor-alkali products, industrial chemicals and specialty chemicals.
Source:-www.capitalmarket.com
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Sterlite Industries surges on bonus, stock-split proposal
Sterlite Industries jumped 5.5% to Rs 1,382 after informing that its board is considering stock-split and a bonus issue.
As many as 2.1 lakh shares changed hands in the counter on BSE.
Rising global copper and aluminium prices boosted the Sterlite Industries' scrip in recent months. From a low of Rs 698.70 on 28 October 2005, it surged to Rs 1,309.70 by 1 February 2006.
Sterlite Industries' book value was a robust Rs 323.90 per share (face value Rs 5) as on 31 March 2005. A board meeting has been convened on 10 February 2006 to discuss a bonus issue and the splitting of the scrip.
Sterlite Industries is mainly in the copper business. It also has a major presence in aluminium, through its subsidiary Bharat Aluminum Company (Balco), and minerals. It also has major presence in zinc through another subsidiary Hindustan Zinc.
Domestic aluminium makers have raised prices over the past few months tracking firm global prices. On Wednesday (1 February 2006), global aluminium price hit 17-1/2 year high of $ 2,565 a tonne. On the same day, copper price hit a high of $ 4,870 a tonne.
Sterlite's consolidated Q3 December 2005 net profit jumped 68% to Rs 395.04 crore (Rs 235.40 crore). Sales rose 78% to Rs 3,511.38 crore (Rs 1,969 crore).
Source:-www.capitalmarket.com
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Dispatches figure inspires buying in ACC
Cement major ACC rose 2.4% to Rs 589 on the back of surge in cement dispatches in January 2006.
The stock reached climbed to Rs 590.40, an all-time high for the scrip. A total of 2.5 lakh shares changed hands in the counter on BSE.
The stock has firmed up in the past few days although its Q3 results did not live up to market expectations. From a recent low of Rs 544 on 23 January, it surged to Rs 575 by 1 February 2006. A strong uptrend was witnessed in the stock during late October-early December 2005, the period of when the entire market rallied strongly.
ACC's dispatches rose 9.5% in January 2006 to 16.48 lakh tonnes. Cement production jumped 10.1% to 16.46 lakh tonnes.
ACC's profit after tax jumped 75.6% to Rs 94.12 crore from Rs 53.58 crore in Q3 December 2004. Net sales rose 12.2% to Rs 1,072.07 crore (Rs 955.33 crore).
Demand for cement from rural housing sector has soared following a good monsoon last year and companies have been hiking prices of the commodity since the past few months. Late in January 2006, top cement producers raised retail prices by an average Rs 2 per bag in the Mumbai market, the country's largest. Retail cement prices have gone up to Rs 185-188 per 50-kg bag.
After exiting from the refractory division, ACC has begun consolidating existing businesses. ACC has also acquired a stake in ready mixed concrete company Tarmac India.
In January 2005, the world's second largest cement maker, Holcim, acquired control over ACC.
Source:-www.capitalmarket.com
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Nalco retains lustre
National Aluminium Company jumped 4% to Rs 295 tracking firm global aluminium prices.
As many as 4.2 lakh shares changed hands in the counter on BSE.
On Wednesday (1 February 2006), the stock had gained 3% to Rs 283.80 after it hiked domestic aluminium prices by Rs 5,000 per tonne, taking cue from firm global markets. A day ahead of the announcement (31 January), it had spurted 7.4% to Rs 275.40.
LME aluminium price hit a 17-1/2 year high of $ 2,565 on Wednesday (1 February).
Nalco had hiked prices by Rs 3,500 in the beginning and by Rs 2,500 in the middle of last month.
The world aluminium industry is facing a crisis due to high energy costs and many units have either shut shop or cut down production, causing LME aluminium prices to rally. Buying by hedge funds, too, has helped propel rally in base metals like copper and aluminium.
Nalco's net profit rose 28% in Q3 December 2005 to Rs 393.03 crore (Rs 306.07 crore). Sales rose 22% to Rs 1,324.90 crore (Rs 1,090.05 crore)
Source:-www.capitalmarket.com
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Bids sidelined, Reliance Energy hard hit
Reliance Energy lost for the second successive day after its consortium failed to get a government contract to modernise the Delhi airport.
Reliance Energy (REL) scrip was down 1.3% by mid-morning trade to Rs 603.50. As many as 60,314 shares changed hands in the counter on BSE. On Wednesday (1 February), REL stock had lost nearly 4% to Rs 612 following the news of bids of its competitors being cleared by the cabinet after trading hours on 31 January 2006.
After surging during late November-early December 2005, the stock became a bit volatile later. It has moved between Rs 578-Rs 656 since 9 December 2005.
The government has awarded the contract to modernise the New Delhi airport to a consortium led by the GMR group in collaboration with Fraport, a German airport operator. REL's financial bid was the highest but GMR was offered the chance to match REL's financial bid as its bid was deemed to be technically better qualified.
REL, now a part of Anil Dhirubhai Ambani Group, is a leading private sector utility company. The group distributes nearly 21 billion units of power to over 25 million consumers in Mumbai, Delhi, Orissa and Goa. REL generates 941 MW of power, through its power plants located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.
REL's Q3 December 2005 net profit rose 23% to Rs 164.64 crore (Rs 134.22 crore). Net sales rose 6% to Rs 988.35 crore (Rs 929.13 crore).
Source:-www.capitalmarket.com
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Jubilant Organosys jubilant on new orders
Jubilant Organosys rose nearly 3% to Rs 1,069.95 having bagged $ 40 million worth of contracts for custom manufacturing of agrochemical intermediates and fine chemicals.
As many as 2,172 shares changed hands in the counter on BSE.
A major correction took place in the stock from mid-January 2006 despite the company reporting strong Q3 results. From a recent high of Rs 1,190.55 on 10 January 2006, it slipped to Rs 1,039.15 by 1 February 2006. Earlier, the stock had risen, in the run up to the results, from a low of Rs 990.55 on 8 December 2005.
The company said it has bagged the new contracts worth $ 40 million from global leaders in pharmaceuticals and agrochemicals industry.
The company has also signed CRAMS (contract-research and manufacturing) orders worth $ 28 million for calendar year 2007, with various global life sciences firms. The company also said talks are on with several others and expects more such contracts.
The company has over the last year invested around Rs 150 crore on enhancing its capabilities in R&D and manufacturing of advance intermediates and fine chemicals which are used in pharmaceutical and agrochemical industries.
For Q3 December 2005, Jubilant Organosys's consolidated net profit rose 36% to Rs 36.60 crore (Rs 26.90 crore). Operating income jumped 47% to Rs 423.40 crore.
Source:-www.capitalmarket.com
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Ashok Leyland revs up on new order
Ashok Leyland jumped 5.6% to Rs 33.90 on high early volume 43 lakh shares on BSE after reports that it has been asked to supply equipment to the defense sector.
A sharp drop in oil price on Wednesday lent further weight to the stock. US crude for March delivery fell $1.36 to settle at $66.56 on Wednesday after a weekly US government data showed rise in crude, gasoline and heating oil inventories. High oil prices often weigh on auto stocks on concerns that it may impact sales.
On Wednesday (1 February) 2006, Ashok Leyland's stock had risen nearly 5% to Rs 32.10 on a high volume of 42.4 lakh shares on BSE.
Earlier, the stock had seen a surge during late October-late November 2005 and became a bit volatile later due to alternate bouts of buying and selling. The volatility in the stock, however, was limited to a narrow range. The stock has moved between Rs 30-33 since late November 2005.
Ashok Leyland (ALL) has bagged an order worth Rs 230 crore from the Indian army for products and spares, say media reports.
After trading hours on 31 January, ALL reported flat Q3 December 2005 results. ALL's performance in Q3 December 2005 was impacted by excessive rains in South India where it has a strong presence, .
ALL's Q3 December 2005 net profit rose 2% to Rs 54.47 crore (Rs 53.66 crore). Turnover rose 22% to Rs 1202.4 crore (Rs 987.11 crore).
ALL plans to invest Rs 550 crore in the next two years on capacity expansion for all its commercial vehicles. This will include setting up of a unit in Dubai to build bodies of buses, a bus manufacturing factory in North India and a unit to manufacture gears for export. The plan is to take the capacity to 1 lakh units from the current 77,000 units per annum.
At present, ALL's product basket is oriented towards medium and heavy commercial vehicles. The company has indicated that it is working on finding the most effective way to strengthen its position in light commercial vehicles (LCVs). The company wants to enter the LCV segment through acquisitions and had zeroed in on a few players.
Source:-www.capitalmarket.com
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Nahar Industrial members approve increase in Authorised Capital
Nahar Industrial Enterprises Ltd has informed that the members at the Extra Ordinary General Meeting (EGM) of the Company held on January 30, 2006, inter alia, have accorded to the following:
1. Increase in Authorised Share Capital of the Company from Rs 50,00,00,000/- divided into 4,00,00,000 equity share of Rs 10/- each and 10,00,000 7% Non-Cumulative Redeemable Preference Shares of Rs 100/- each, to Rs 65,00,00,000/- divided into 5,50,00,000 equity shares of Rs 10/- each and 10,00,000 7% Non-Cumulative Redeemable Preference Shares of Rs 100/- each and consequential amendments in Memorandum & Article of Association of the Company.
2. Authority to the Board to issue, offer and allot in the course of an international offering to the eligible foreign investors by way of circulation of any offering circular or prospectus or by way of private placement basis, Foreign Currency Convertible Bonds (FCCBs) / Global Depository Receipts (GDRs) or any other equity linked financial instrument in foreign convertible currency equivalent to the aggregate principal amount upto USD 40 million with an option to retain out of over subscription of additional USD 5 Million (green shoe option), subject to necessary approvals.
Source:-www.indiabulls.com
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Jaiprakash Associates, NMDC may remain in the thick of action
Jaiprakash Associates, subject to requisite approvals, may see action after it launched an FCCB issue of Euro 125 million with an option to increase the size by an additional Euro 40 million on 01 February 2006.
National Mineral Development Corporation is expected to remain in the limelight after its Board of Directors approved a second interim dividend of 115.4%. This is in addition to the first interim dividend of 76.93% paid in November 2005, taking the total interim dividend to 192.33% for FY-06 on the paid-up equity share-capital.
Jubilant Organosys may edge higher after announcing that the company has added to its order-book contracts worth $ 40 million with global life sciences companies for calendar year 2006. The company has also signed annual CRAMS contract worth $ 28 million for calendar year 2007 with various global life sciences companies.
Ramco Industries is expected to move after the Board of Directors at a meeting held on 30 January 2006 declared a second interim dividend of Rs 5 per equity share of Rs 10 each fully paid-up (50%) for the current financial year 2005-06.
Mphasis BFL may edge after the Karnataka High Court sanctioned the scheme of amalgamation and arrangement between itself and Kshema Technologies. The court's order has also been filed with the Registrar of Companies, Karnataka.
Shree Ram Mills may rise after it informed that the Board of Directors will meet 09 February 2006 to consider a bonus issue of equity shares.
Jet Airways may remain in action after it announced yesterday the launching of two new flights. India's largest private-sector airline will operate direct flights on Bangalore-Trivandrum-Bangalore and Chennai-Trivandrurn-Chennai routes with effect from 01 February 2006. The company has strengthened its domestic network by inducting its 53rd aircraft, a Boeing -737, and with it more services on the domestic routes. Jet Airways will also operate an early morning service from Pune to Bangalore and an evening service from Bangalore to Pune, giving day-return facility for passengers from Pune.
Ashok Leyland may edge higher on reports that it has received a Rs 230 crore order from the Indian army to supply products and spares. Ahead of the news, the stock rose nearly 5% on Wednesday (1 February) to Rs 32.10, on heavy volume of 42.4 lakh shares on BSE.
JK Paper may see action on reports that it has decided to place 10% stake with International Finance Corporation at Rs 65 per share through preferential issue of shares. The stock settled at Rs 60 on BSE on 1 February 2006.
United Phosphorus - the largest generic agrochemical company may see action on reports that it is planning an acquisition in Europe. The deal could be in the range of $ 150 million to $ 200 million.
Apollo Hospitals may see action on reports that HDFC may join hands with Apollo Hospitals to set up two-three super specialty hospitals in Mumbai.
Lupin may see action on reports that it is in talks with a manufacturing and distribution company in Australia to float a marketing joint venture. The JV will mark Lupin's maiden entry into Australian markets with its branded generics.
Source:-www.capitalmarket.com
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Cipla mulls Bonus shares issue
Cipla Ltd has informed that a meeting of the Board of Directors of the Company will be held on February 11, 2006, inter alia, to consider the following:
1. Issue of bonus shares.
2. Further issue of securities in the domestic and / or international market.
3. Increase in the limit of investment by Foreign Institutional Investors into the paid-up capital / securities of the Company.
Source:-www.indiabulls.com
Cipla jumped nearly 10% to Rs 485 after scheduling a board meet for 11 February 2006 to consider a bonus issue.
By first few minutes of trade, 1.1 lakh shares changed hands in the counter on BSE.
The market had been agog with rumours over the past two months that Cipla may declare a bonus issue. However, the scrip was quite range-bound since mid-December 2005 following a rally during late October-early December 2005. From a low of Rs 348.25 on 28 October 2005, the stock had edged up to Rs 441.85 by 1 February 2006.
Cipla has a book value of Rs 51.50 per share (face value of the scrip is Rs 2).
Along with the bonus issue, Cipla's board will also consider the raising of FII investment ceiling and issue of securities in the domestic and/or international market.
Cipla reported 39.5% growth in Q3 December 2005 net profit to Rs 175 crore as sales rose 30.1% to Rs 780.62 crore, helped by a 36% jump in exports and 18% domestic sales growth. Cipla also received Rs 72.70 crore in Q3 December 2005 from insurance companies for the damage to its storehouse during floods in Mumbai during July 2005.
Cipla, a strong player in anti-AIDS drugs and anti-asthmatics, has adopted a partnership strategy to penetrate the US market, rather than registering and selling drugs on its own, and it now has eight partners
Source:-www.capitalmarket.com
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Steel sector in a twist as future’s not too bright
THE performance of steel companies in the December ’05 quarter is a pale version of the robust performance seen in the same quarter last year. Last year, steel companies were ruling the roost with steel prices at record highs and input prices still not pinching. This quarter has seen a reversal in fortunes, with steel prices down 30-40% Y-o-Y and costs up. Last month saw a slight recovery in global prices. There are also signs of a downward correction in raw material prices. However, the sector can look forward to a brighter future.
China continues to play an important role and a lot hinges on the ability of the Chinese to control output from the domestic steel industry. Numbers from the three largest Indian steel makers are a tad disappointing. SAIL’s net sales declined 18% to Rs 6,334 crore, while its net profit has suffered a steep decline of 55% to Rs 684 crore on account of a dip in its operating profit margins that dropped to 17% from last year’s 36%. Tata Steel has done relatively better with a 1% drop in sales and a 15% drop in profit while operating margins have dropped to 31% from 38% last year.
JSW Steel, the third largest company, recorded a 11% drop in sales and a 35% drop in profits over the past year, while its operating profit margins dropped to 22% from 29%. The drops were largest when volumes growth was muted. The insulation offered by captive sources against market pressures also comes into play, as companies with a higher amount of self-reliance would be better placed in an adverse market. But these numbers do not give the complete picture. The steel makers are struggling as pricing pressures squeeze them from both sides. Steel prices after sinking 30-35% lower than their peaks, have stabilised at much lower levels. Meanwhile, prices of raw materials such as coal and iron ore saw an increase of more than 70%. The full impact of these changes was apparent in the results for the December-ended quarter. What the future holds for the steel industry is more interesting. It is certain that with the fall in steel prices, coal and ore prices will also come down in the near term. Contracts for semi-soft coking coal are being settled in Australia for 30-35% lower than last year’s prices. BHP Billiton has just settled a coking coal contract at 8-16% price cuts for various grades of coal. Prices of almost all input, except for iron ore, have come down in the wake of melting steel prices.
However, it will be premature to expect profits for steel companies to improve. There is still a massive Chinese capacity overhang. Chinese production in December rose 21% over last year and touched 32mt, despite the Chinese claims of a consolidation in their steel sector. The world production of crude steel during December was 6% higher than last year at 96mt.
Source:ET
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HEARD ON THE STREET
HDFC powers ahead on growth prospects
THERE was increased buying on the HDFC counter on expectations that the rise in the economy would lead to better growth prospects for the mortgage major. The stock was up 3.3% at Rs 1,385 with 1,51,552 shares changing hands on the BSE.
Thermax counter ticking SHARES of engineering major
Thermax were up 4.9% at Rs 1,196 on Wednesday. Traders said investor interest in the pollution control equipment leader was mainly due to the government’s recent measures on environmental legislation, which could benefit the company most. The stock saw volumes of 68,882 shares on the BSE.
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ONGC’s Nigeria plans on hold
ONGC’s plan to acquire oil assets in Nigeria may have to wait a while with the Cabinet deferring a decision on ONGC Videsh’s (OVL) plans to re-enter Nigeria’s exploration sector by taking up interests in two blocks bid earlier. OVL, which had lost out the race to Korean companies despite having put in the highest bid, has sought permission to re-enter the race for two exploration blocks—OPL-321 and OPL-323 in Nigeria. The Cabinet, however, deferred the issue and a decision is slated to be taken later. OVL’s chances of reentering the fray brightened with Korean National Oil (KNOC) delaying the submission of bank guarantees for payment of signature bonus. Sources said the empowered committee of secretaries will be meeting shortly to discuss the matter before it will be referred back to the Cabinet. Some reservations were expressed by some ECS members about the prospects of oil and gas in these fields. The Cabinet’s decision to defer the matter comes close on the heels of an earlier instance when OVL’s plans of buying out the Akpo oilfields in Nigeria for almost $2bn. This proposal, however, was turned down by the government as it was found to be a risky investment. OVL was the top bidder for two exploration blocks but lost to KNOC, as the Nigerian government, has given the first right of refusal to the Korean firm. OVL had earlier sought the government’s permission to pay a signature bonus of $485m to the Nigerian department of petroleum resources.
Source:-ET
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JK Paper may place 10% equity with IFC, raise Rs 100 cr
IN WHAT could become the third such transaction, the World Bank’s International Finance Corp (IFC), is likely to soon buy over 10% equity stake in JK Paper. In a capital restructuring exercise, India’s fourth largest paper maker said it will generate Rs 100 crore via an equity raising programme that will include allotting Rs 50 crore worth of equity shares each to IFC and the promoter group at Rs 65 a share. In the shareholding pattern, the promoters’ JK Industries and JK Agri Genetics own 12.1% each, investment company BMF Beltings has 2.8%, while JK Lakshmi Cement owns 13.4%. The company has been promoted by the Singhania family. On Wednesday, JK Paper’s shares fell 4.9% to Rs 60 on the BSE, with the volume at 95,966 shares. “The money would be used to part finance our plan to set up a packaging board project in Gujarat,” Harsh Pati Singhania, MD, told ET. “IFC is interested in partnering us and is confident that the paper industry has lot of growth,” he added. JK Paper, which currently makes 180,000 tonnes of paper a year, is planning to build a 60,000 tonne multilayer packaging plant. This is the third time that IFC has expressed interest in an Indian paper company. The multilateral lending agency had recently invested about $40m for part financing a capacity expansion programme in the LN Bangur-owned AP Paper Mill. The amount included the purchase of 9.6% of the company’s equity. IFC is also likely to invest about Rs 150 crore in West Coast’s expansion project that is estimated to cost about Rs 870 crore. The investment is also likely to include the cost of 5% of the company’s equity capital. The Indian paper industry is among the fastest-growing sectors, with demand rising by 6-7% every year, compared with 2.2% in developed countries. As it is linked to the economy, which grew 8.1% in Q2, research companies expect more scope for the sector. Most of the big names in the sector — Blackstone, Chrys Capital, New Vernon — have shown interest.
Source:-ET
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Growel to get a Spanish partner
AFTER global private equity funds, it’s now the turn of foreign majors to tap the Indian auto component growth story. Spain’s Sid, it’s learnt, ais close to forming a JV with the Mumbai-based Growel group to make high-end chemicals for use in the automotive component sector. Though the Rs 200-crore Growel group has no plans to offer equity participation to the Spanish firm, chairman Umesh More said he isn’t ruling out “such a possibility” . “We’ll decide after seeing the performance of the new JV,” he told ET. The Growel group, with interests in real estate and software, plans to set up a 50:50 JV with Sida. This will allow group company Grauer & Weil to use Sida’s customer base, including auto majors such as Renault, GM, Volkswagen and others. Mr More and his family own about 52% in Grauer & Weil, the public hold the rest. “Sida is among the top-most OEM suppliers in Europe and is convinced of the growth in the Indian automotive market. It’s estimated that the Indian component export market may rise to $25bn in ’15 from the current $1.6bn,” said Mr More. The two partners will initially invest about Rs 90 lakh in the JV. The JV will focus on high-end, chrome-free electroplating products in line with new environmental standards in Europe and the US. Growel plans to develop real estate assets, including 3 acres in Chembur and 5-acre factory land on the Pune-Mumbai highway. It has offered on lease over 65,000 sq feet of its factory land to the Pantaloon-promoted Big Bazaar at Kandivali. Sida’s entry into India comes at a time when global components majors like Magna, Textron, Precision Castparts and Faurecia have expressed interest to set up shop in India. India is an attractive market for such companies as the country boasts of low labour costs and high quality engineering skills. While labour costs in developed countries are about 30-35% of sales, they are just 8-9% in India.
Source:-ET
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ChrysCap sells 6.5% stake in MphasiS for Rs 130 cr
AMIDST all the hype about Baring’s divestment plans in MphasiS, another private equity player, ChrysCapital, has quietly exited the IT services company. ChrysCapital sold its near 6.5% stake in MphasiS for Rs 130 crore through the secondary market route. According to sources, this transaction took place in late ’05. Consequently, ChrysCapital’s shareholding in MphasiS is now nil. It originally held around 14% in the company, of which around 8% was sold about 18 months earlier. A s h i s h Dhawan, senior managing director, ChrysCapital, however continues to remain on the MphasiS board as an independent director. Sources termed the private equity fund’s move to exit the IT services major as a pure “financial decision”. MphasiS was one of ChrysCapital’s early high-profile investments and the private equity fund has been able to generate a handsome return of five times on its original investment. While ChrysCapital had bought its holding in MphasiS at Rs 31 per share (adjusted for stock splits), the blended sale price across the two sales tranches has been around Rs 150 per share. ChrysCapital recently raised a $550m fund, and now manages $1bn across four funds. With over 30 investments since 1999, it aspires to build a leading investment fund focused on India. Its portfolio of investments includes Yes Bank, the Shriram group, IVRCL, Suzlon, Micro Inks, Balakrishna Tyres, and Intas Pharma.
Source:-ET
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STCI to acquire UTI Securities for Rs 265 crore
SECURITIES Trading Corporation of India (STCI), one of the largest government bond houses in India, will acquire UTI Securities, the brokerage and investment banking arm of the erstwhile Unit Trust of India. STCI has outbid the British bank, Standard Chartered, and Bank of Baroda, and will pay Rs 265 crore for the transaction. Bank of Baroda and StanChart had made bids Rs 250 crore and Rs 220 crore, respectively, against a reserve price of Rs 150 crore. STCI will be allowed to use the UTI brand for two years. With the acquisition, STCI will get an entry into a well-diversified range of services like equity trading, portfolio management, depository services, merchant banking and commodity trading. G Narayanan, managing director, STCI, told ET, “We were looking for diversification. With our kind of resources, primary dealership Securities has a presence in major cities with 20 branches and 150 franchisees. In terms of the arrangement with STCI to acquire UTI Securities for Rs 265 croreUTI-I, the company has to retain employees for one year, while the managing director has to be retained as a wholetime director for a year. business alone is not sustainable. We are very excited.” A turn in the interest rate cycle, regulatory restrictions and absence of short-selling have made the going tough for most bond market players. UTI Securities will give STCI a greater distribution reach across India. UTI STCI plans to retail UTI-Securities as separate entity STCI managing director G Narayanan said,“We have found the company to have excellent employees and plan to retain them.” STCI plans to retail UTI Securities as a separate entity. “Our plan is to hive off the primary dealership activity into a separate company with STCI becoming a holding company,” Mr Narayanan said. UTI Securities may complement the primary dealership business by helping STCI distribute government securities to high net worth individuals, provident funds and smaller banks.
Source:-ET
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Sensex retreats from the vicinity of 10,000-mark
The market came within the striking distance of the 10,000 mark today in what was to be a highly volatile trading session. Volatility was high in opening as well as in the last hour of trade.
The Sensex had surged in mid-afternoon trade and had come within striking distance of 10,000 before a sell-off pulled it down by as much as 100 points, at one point of time, in late trade.
In early trade, Sensex had slipped into the red after a firm opening.
The barometer index ended with a loss of 60.63 points (0.6%) to settle at 9,859.26. It moved 174.60 points for the day, between a low of 9,819.32 and a high of 9,993.92. The S&P CNX Nifty lost 29.55 points (0.9%) to settle at 2,971.55.
The market breadth was extremely weak as 1,935 stocks declined on BSE as compared to 561 that rose. A meagre 49 scrips were unchanged. Losers outpaced gainers by a ratio of 3.44:1.
Key Asian markets were subdued after the US Federal Reserve indicated that more interest rate hikes may be needed to curb inflation. The Fed on Tuesday hiked interest rates by 25 basis points from 4.25% to 4.5%. On Wednesday, a sharp fall is expected on Wall Street as Google missed analysts' profit target for the first time.
Banking stocks slipped after the US Federal Reserve raised interest rates by 25 basis points, indicating that more rate hikes may be on cards.
Select construction scrips moved higher even as sugar scrips slipped on profit-taking, after a recent sharp surge in their prices. Stocks edged up selectively; Cummins India, Voltas, Thermax, Bharat Bijlee rallied on the back of strong Q3 numbers.
BSE clocked a turnover of Rs 4,014 crore, higher than Tuesday's Rs 3,965.81 crore.
Reliance Energy dropped 3.8% to Rs 612 after its consortium failed to get a government contract to modernise the Delhi airport.
L&T jumped 5.4% to Rs 2,285 on renewed buying on the back of its strong order book. A humungous 7.7 lakh shares changed hands in the counter on BSE.
Dr Reddy's Lab gained 5% to Rs 1,180 on reports that it had entered into a sales-agreement with US drug-maker Merck & Co. However, Ranbaxy lost 3% to Rs 386.
Zee Telefilms plunged 5.5% to Rs 155 after it reported a 17.5% fall in Q3 December 2005 net profit to Rs 31.70 crore (Rs 38.41 crore). Net sales rose 30.6% to Rs 231.38 crore.
MTNL plunged 5% to Rs 134.60 on 2.6 lakh shares in the counter on BSE.
Bank stocks came under pressure. HDFC Bank lost 3.4% to Rs 736, ICICI Bank lost 3% to Rs 589 and State Bank of India shed 1.9% to Rs 869.
Housing finance major, HDFC, rose 4% to Rs 1,395 after it raised interest rate on housing loan by 50 basis points.
Cummins India jumped 12% to Rs 199.70 on the back of strong Q3 results. The stock rose on heavy volume of 37.9 lakh shares. Cummins India's net profit has jumped 47.54% to Rs 48.47 crore. Net sales has risen 31.3% to Rs 389.79 crore (Rs 296.76 crore).
It was a double-whammy for Jet Airways. The stock plunged 6.8% to Rs 928.70. Oil companies raised aviation turbine prices with immediate effect. Meanwhile, the NSE banned fresh F&O positions in Jet Airways as F&O position in the scrip had crossed 95% of the market-wide position limit.
Patni Computer lost 4% to Rs 464 in volatile after it reported a fall in Q4 December 2005 net profit. Patni Computer has reported a net profit of Rs 34.49 crore for Q3 December 2005 compared to Rs 58.93 crore in Q4 December 2004.
Car major Maruti Udyog (MUL) dropped 1.9% to Rs 742.10. MUL's domestic car sales rose 7.6% to 48,229 in January 2006.
Gujarat Ambuja Cements lost 3% to Rs 85.70 whereas another cement major Grasim rose 2.7% to Rs 1,492.
Index heavyweight Reliance Industries lost 0.8% to Rs 707.55 on 16.2 lakh shares.
PSU aluminium major National Aluminium Company gained 3% to Rs 284 but Hindalco lost 1.2% to Rs 162.70 after the two companies raised aluminium prices with immediate effect. Tracking firm global prices, Hindalco has raised domestic prices of aluminium by Rs 6,000 a tonne with immediate effect. Nalco has hiked prices by Rs 5,000 per tonne. On 31 January, LME aluminium price hit a 17-1/2 years high of $ 2,526 a tonne.
Voltas rallied 7% to Rs 717.50 on the back of strong Q3 results. Voltas reported a 68% spurt in net profit for Q3 ended December 2005 to Rs 11.36 crore (Rs 6.76 crore). Net sales rose 55% to Rs 447.09 crore (Rs 288.42 crore).
Ashok Leyland rose on high volume. It shot up 5.8% to Rs 32.45 as 42.3 lakh shares changed hands in the counter on BSE. Ashok Leyland has reported 1.6% growth in Q3 December 2005 net profit to Rs 54.51 crore (Rs 53.65 crore). Net sales has risen 21.8% to Rs 1,201.43 crore.
Oral care specialist Colgate rose 3.2% to Rs 352.95 on high volume of 10.9 lakh shares. It has reported robust Q3 results which sent the scrip surging on 27 January 2006 following the announcement.
Source:-www.capitalmarket.com
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Voltas grabs attention post robust results
Voltas spurted 9.4% to Rs 732.65 on 2.14 lakh shares after reporting robust Q3 results.
The stock witnessed a pre-results' rally from the close of Rs 640.15 on 23 January 2006 to end at Rs 670.30 yesterday, ahead of its results.
Voltas jumped today after it reported a 68% spurt in net profit for Q3 ended December 2005 to Rs 11.36 crore (Rs 6.76 crore). Net sales rose 55% to Rs 447.09 crore (Rs 288.42 crore).
It has also hiked the Foreign Institutional Investors (FIIs) including their sub-accounts upto an aggregate limit of 30% of the paid-up equity share capital.
Voltas is the second-largest player in the Rs 3,000 crore air-conditioner (AC) market. The company's engineering business is reaping profit from the up-tick in the domestic economy as well as a construction boom in the Middle East.
Voltas undertakes mechanical, electrical and plumbing (MEP) projects in the overseas markets. It has a very strong presence in the Middle East and has executed projects in over 26 countries. Its core competency, in the MEP segment, is in project management and it has a proven track record of executing such projects.
Source:-www.capitalmarket.com
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Hindalco, Nalco shine on hike in aluminium price
Hindalco and National Aluminium edged higher after they hiked aluminium prices with immediate effect.
National Aluminium Company (Nalco) jumped 5.5% to Rs 290.70 on 4.4 lakh shares in the counter on BSE. Hindalco rose 1.6% to Rs 167.50 on 5.03 lakh shares.
Nalco had jumped 7.4% on Tuesday (31 January) to Rs 275.40 while Hindalco had rallied 2.7% to Rs 164.80 before the price hike announcement.
Tracking firm global prices Hindalco has raised domestic prices of aluminium by Rs 6,000 a tonne with immediate effect. Nalco has hiked prices by Rs 5,000 per tonne. On 31 January, LME aluminium price hit a 17-1/2 years high of $ 2,526 a tonne.
The world aluminium industry is facing high energy prices with many units either closing down gradually or cutting down production. As energy contributes about 50% of the total aluminium production costs, any rise in energy prices hits producers directly.
Last month, Nalco had hiked prices twice. At the beginning of the month it had hiked prices by Rs 3,500 and by Rs 2,500 in the middle of the month.
At the time of announcing Q3 December 2005 results, Hindalco said it expects domestic aluminum metal demand to grow in double digits in 2006, boosted by end-use sectors like construction, power, packaging and automobiles.
Source:-www.capitalmarket.com
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Amtek India comes out trumps on Q2 results
Amtek India jumped 4.2% to Rs 107.80 on 73,643 shares after announcing robust quarterly results.
The counter slipped from the peak of Rs 114.50 on 03 January 2006 to settle at Rs 103 on 30 January 2006, ahead of the results.
Amtek India flared higher today after it reported Q2 December 2005, net profit of Rs 18.15 crore (Rs 15.48 crore). Net sales jumped 45.30% to Rs 122.14 crore (Rs 84.04 crore).
Amtek India manufactures machined and casting components for the automobile industry. Its foundry is one of the biggest and one of the most modern foundries in India, with a capacity of 30,000 tpa. The company is a Tier-I supplier for the auto components to OEMs and has an installed capacity of 75 lakh per annum auto components. The product portfolio of the company includes products used in transmission and suspension assembly for all categories of vehicles.
It has an OEM clientele including Maruti Udyog, Kinetic Engineering, New Holland Tractors, Escorts, Carraro Transmissions, John Deere Tractors and M&M Tractors. The company also has good presence in the replacement market.
Amtek India has earlier acquired UK-based Sigma Cast Group, one of the largest suppliers of turbo-charger components for automobiles in the world. Sigma’s 100 % subsidiary, Sigma Cast Iron, is engaged in the business gray iron and spheroidal graphite iron-casting for auto and engineering industries.
Source:-www.capitalmarket.com
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'Gold rush' for L&T
Engineering & construction major L&T spurted 9% to Rs 2,373.
A stunning 4.1 lakh shares changed hands in the counter on BSE.
The stock advanced for the second day in a row. It had gained 3% on Tuesday (31 January) to Rs 2,166.75.
The stock has seen extensive buying ever since the company reported strong Q3 results coupled with a strong order-book position. From a recent low of Rs 1,866.05 on 23 January, it has spurted 27% in just 6 trading sessions to the current Rs 2,373.
L&T's strong order flows, diversification in international markets and efforts to focus on core businesses have made the stock favourite among market men. L&T has emerged as one of the key beneficiaries of a boom in industrial capital expenditure and huge investments in the infrastructure segment. The company's qualification in almost all segments of infrastructure work, coupled with the relatively bigger size of its balance-sheet, gives it an edge over other infrastructure players in the country.
L&T Q3 December 2005 net profit excluding gain on sale of glass container business & other divestments, rose 41% to Rs 187.18 crore. Revenue rose 14% to Rs 3666.36 crore.
L&T had an order-backlog of Rs 22,900 crore at end December 2005.
Last week, a consortium of L&T and Samsung Heavy Industries bagged a Rs 2,117 crore ($ 456 million) order from the Oil & Natural Gas Corporation (ONGC) for the Vasai East Development Project to be executed in a little over two years.
Source:-www.capitalmarket.com
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Dr Reddy's Lab flies on Merck pact
Dr Reddy's Lab jumped 6.7% to Rs 1,196 on reports that it had entered into a sales-agreement with US drug-maker Merck & Co.
As many as 1.5 lakh shares changed hands in the counter on BSE.
Dr Reddy's Lab (DRL) stock has surged in the past few days on the back of strong Q3 results. From a recent low of Rs 1,028.45 on 20 January, it had surged to Rs 1,119.60 by 31 January. The company has entered into an agreement with Merck &Co as per which it will sell generic versions of the US-based drug maker's Proscar and Zocor drugs, after their patents expire.
DRL's consolidated net profit as per US GAAP surged to Rs 62.80 crore in Q3 December 2005 from Rs 4 crore in Q3 December 2004. Revenue rose 25% to Rs 590 crore. Low-base effect and savings of research and development costs boosted the bottom-line.
Dr Reddy's Lab, an early Indian entrant into the US generics market, has been through a rough patch over the past three years. During this time, it has had no big drug launches to fill the hole caused when its exclusive rights to sell a version of Eli Lilly & Co's blockbuster Prozac anti-depressant ended in the financial year ending March 2002.
The company had also been bogged down by high research-and-development costs for both its generic and new drug programmes. It entered into cost-sharing deals with venture capitalists last year in a bid to reduce its burden.
Source:-www.capitalmarket.com
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Zee Telefilms hits a rought patch
Zee Telefilms plunged 4.4% to Rs 157.30 on 5.23 lakh shares after it reported dismal Q3 results.
The stock jumped 3.7% to Rs 164.55 on 8.65 lakh shares following reports that Zee has replaced Sony Entertainment Television (SET) in the second spot in the Hindi language entertainment segment.
The stock recovered from a close of Rs 139.65 on 28 October 2005 to finish at Rs 165.35 on 21 December 2005.
Media major Zee Telefilms came under selling pressure today after its lacklustre performance in Q3 FY-06. The Subhash Chandra-promoted company registered a 20.80% fall in net profit to Rs 31.70 crore for the quarter ended 31 December 2005 (Rs 38.42 crore). Total income increased 30.60% to Rs 240.16 crore (Rs 179.10 crore).
Zee Telefilms is the content supplier and space-selling agent for Zee's broadcasting entities, film-production and distribution, access and education businesses.
It is the largest vertically integrated media and entertainment company in India, beamed into more than 120 countries and reaching out to more than 30 crore viewers across the globe, in seven different languages. The company has built a valuable portfolio of television programming assets including Zee TV, Zee Cinema, Zee Music, Zee News and the regional programming portfolio. During 2005, the company has launched Zee Sports, Zee Smile and Zee Telugu, Zee Business, Zee Kashmir (a one-hour slot on Zee Punjabi). These network channels are now available on India's first Direct-to-Home (DTH) platform, Dish TV.
Source:-www.capitalmarket.com
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Patni Computer tanks after shocking results
Patni Computers Systems fell 7.3% to Rs 448 on 3.06 lakh shares after it announced poor results for Q4 December 2005.
The stock witnessed a solid pre-results rally from the close of Rs 445.40 on 18 January 2006 to finish at Rs 492.60 on 27 January 2006, expecting an excellent performance from the company.
Patni Computer Systems reported a sharp 44.22% fall in net profit for the Q4 ended December 2005 to Rs 32.87 crore (Rs 58.94 crore). Net sales, however, increased 27.20% to Rs 238.95 crore (Rs 187.97 crore).
In December 2005, the company issued 61.56 lakh American Depository shares (ADS) in a public offering, representing 1.23 crore equity shares of Rs 2 each fully paid-up at a price of $ 20.34 per ADS. PCS collected an aggregate Rs 57,39,262 from the issue. Each ADS represents two equity shares of Rs 2 each fully paid-up.
Patni Computer Systems is a leading provider of information technology services based in India . It offers services through industry-focussed practices including insurance, manufacturing, financial services, and telecommunications, and through technology-focused practices.
Patni’s service lines include application development, application maintenance and support, packaged software implementation, infrastructure management services, product engineering services, business process outsourcing and quality assurance services.
Source:-www.capitalmarket.com
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National Peroxide at dizzying heights after board meeting to consider issue of bonus issue/ sub-division of shares.
National Peroxide, an otherwise ill-liquid stock characterised by thin volumes, surged 10% (max limit) to Rs 7,747.55 after the scheduling of a board meeting to consider issue of bonus issue/ sub-division of shares.
It is also a new all-time high for the counter.
A sparse 3,057 shares changed hands in the counter today on BSE against a two-week average volume of mere 418 shares.
The stock surged from the close of Rs 5,543.05 on 28 December 2005 to close at Rs 7,043.25 yesterday.
Its latest equity capital is a tiny Rs 2.30 crore (23 lakh shares of face value Rs 100 each) while its reserves are Rs 42.07 crore. If declared, this will be the company's maiden bonus issue.
National Peroxide is jointly promoted by Bombay Dyeing & Manufacturing Company and Laporte Industries, UK. The peroxygens division of the company manufactures hydrogen peroxide and persalts. The plastic additives division produces litharge and PVC stabilisers.
Source:-
www.capitalmarket.com
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TCS gets HCs nod for Scheme of Amalgamation
Tata Consultancy Services Ltd (TCS) has informed that the relevant High Courts have approved the Scheme of Amalgamation of Airline Financial Services (India) Ltd (AFSL), and TCS Business Transformation Solutions Ltd (TCS BTS) and Aviation Software Development Consultancy India Ltd (ASDC) with the Company and all formalities connected therewith have been completed on February 01, 2006.Further the Company has informed that the effective date of the Scheme is February 01, 2006. The Scheme will be operative retrospectively from April 01, 2005, which is the Appointed Date under the Scheme.Since AFSL, TCS BTS and ASDC are wholly-owned subsidiaries of the Company, no shares are required to be issued by the Company upon amalgamation.
Source:-www.indiabulls.com
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