Nuclear deal hopes power Areva T&D India

Areva T&D India jumped 7.14% to Rs 1594 at 13:12 on BSE, extending past two days' gains after Prime Minister Manmohan Singh yesterday, 7 July 2008 said that the government will go through the remaining formalities of the Indo-US nuclear deal.

On BSE, 80,549 shares were traded in the Areva T&D India counter. The scrip had an average daily volume of 21,289 shares in the past one quarter.

The stock hit a high of Rs 1624.10 and a low of Rs 1453.15 so far during the day. The stock had a 52-week high of Rs 3280 on 13 November 2007 and a 52-week low of Rs 1199 on 1 July 2008.

The mid-cap scrip had outperformed the market over the past one month till 7 July 2008, rising 5.66% compared to the Sensex's decline of 13.14%. It also outperformed the market in the past one quarter, gaining 5.97% compared to Sensex's decline of 13.23%.

The company's current equity is Rs 47.82 crore. Face value per share is Rs 10.

The current price of Rs 1594 discounts its Q1 March 2008 annualised EPS of Rs 45.27 by a PE multiple of 35.21.

The Prime Minister is likely to discuss the progress of the Indo-US nuclear deal with US President George Bush on Wednesday, 9 July 2008.

Samajwadi Party (SP) today, 8 July 2008, said it will vote with the government in support of the nuclear deal with the United States The Left parties today, 8 July 2008, said they would submit their letter withdrawing support to the UPA government by 10 July 2008 over the nuclear deal to President Pratibha Patil.

The nuclear deal will give India access to US nuclear fuel and technology without joining the 1970 Nuclear Non-Proliferation Treaty. It is potentially worth billions of dollars to US and European nuclear supplier companies and would give India more energy alternatives to drive its booming economy.

Areva T&D India is seen as a major beneficiary of the Indo-US nuclear deal. The stock surged 20.60% in six trading days to Rs 1487.60 on 7 July 2008 from Rs 1233.40 on 27 June 2008. French giant Areva which holds 72.18% stake in Areva T&D (as at end march 2008), is best known for its nuclear power plant and transmission interests. It is the only company in the world that has interests in every industry linked to nuclear power - from mining uranium to dismantling old nuclear power plants.

On 9 April 2008, Areva T&D India secured an order worth Rs 418 crore from Essar Constructions to provide equipments for power project in Gujarat and Madhya Pradesh.

Areva T&D India's net profit rose 42.70% to Rs 54.10 crore on 22.50% growth in net sales to Rs 502.90 crore in Q1 March 2008 over Q1 March 2007.

The company's products and systems serve to transmit and distribute electricity, ensure the reliability, quality and safety of energy flows.