Hindalco shines on price hike

-

Hindalco Industries surged 5.69% to Rs 200.70 at 14:57 IST on BSE on reports it has raised aluminium prices by Rs 5,000 a tonne to match a global aluminium price rise driven by concern about production cuts in China.

Meanwhile, BSE Sensex was down 139.90 points or 0.84% to 16,534.42, extending last two days' fall caused by Budget blues. Traders, domestic funds and some foreign institutional investors (FIIs) are likely to be hit by a hike in short term capital gains tax on sale of shares to 15% from 10%, which amounts to a massive 50% hike in the tax rate, in Union Budget 2008-09 announced on Friday, 29 February 2008.

The change in tax treatment of the Securities Transaction Tax (STT) in the budget, meanwhile, may impact arbitrage volumes on the bourses. STT will now be treated like any other deductible expenditure against business income for the assesse. This is against the current practicse whereby an assesse gets 100% rebate for STT paid against the tax liability for the year. A fall in arbitrage will result in decline in liquidity on the bourses.

On BSE, 11.44 lakh shares were traded in the counter. The scrip had an average daily volume of 10.03 lakh shares in the past one quarter.

The stock hit a high of Rs 201.65 and a low of Rs 186.50 so far during the day. The stock had a 52-week high of Rs 223 on 15 November 2007 and a 52-week low of Rs 125.25 on 7 March 2007.

India's largest aluminium manufacturer in terms of sales outperformed the market over the past one month till 3 March 2008, gaining 7.35% compared to the Sensex's decline of 8.58%. It also outperformed the market in the past one quarter, declining 1.99% compared to Sensex's decline of 14.60%.

The company's current equity is Rs 122.71 crore. Face value per share is Re 1.

The current price of Rs 200.70 discounts its Q3 December 2007 annualized EPS of Rs 17.71, by a PE multiple of 11.33.

Aluminum futures on the London Metal Exchange (LME) jumped 29% this year after China's worst snowstorms in 50 years caused power outages and forced output cuts at smelters. Indian companies sell products at prices which are linked to the LME.

Hindalco Industries had reported 15.7% fall in net profit to Rs 542.70 crore on 2.70% fall in net sales fell 2.7% to Rs 4531.70 crore in Q3 December 2007 over Q3 December 2006.

The company is India's largest aluminium producer and is engaged in producing aluminium and semi- fabricated products

Popular posts from this blog

IOB capitalises on hike in stake by LIC

-
Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank. The bank made this announcement after trading hours on Wednesday, 25 March 2009. Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09. On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009. The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise. The bank's current equ The current price of ...
Read more

Lok Housing & Constructions builds on fund raising plans

-
Lok Housing & Constructions jumped 6.99% to Rs 107.90 at 11:20 IST on BSE ahead of a board meeting to consider fund raising options from both foreign and local market, including an institutional placement. Meanwhile, the BSE Sensex was down 50.50 points, or 0.30%, at 15203.73. On BSE, 1.86 lakh shares were traded in the counter. The scrip had an average daily volume of 4.74 lakh shares in the past one quarter. The stock hit a high of Rs 115 and a low of Rs 102 so far during the day. The stock had a 52-week high of Rs 390.50 on 1 January 2008 and a 52-week low of Rs 96.25 on 12 June 2008. The scrip had underperformed the market over the past one month till 12 June 2008, falling 26.55% compared to the Sensex's 10.18% decline. It had also underperformed the market in the past one quarter, falling 31.39% compared to Sensex's 3.24% fall. The small-cap housing projects developer has an equity capital of Rs 42.88 crore. Face value per share is Rs 10. The current...
Read more

Griffin Chemicals surges on re-listing

-
Griffin Chemicals was trading at Rs 29, up 2220% on re-listing after six years on Bombay Stock Exchange (BSE). The counter saw miniscule volume of 4769 shares. The stock opened at Rs 23, up 1740% against its last traded price of Rs 1.25 on 8 August 2002. The Griffin Chemicals stock was highly volatile today. It opened at Rs 23 and then rallied ahead to Rs 50 but soon eased to a low Rs 22. The surge in Griffin shares reminds of unprecedented rise in stock prices of KGN Industries on its re-listing day. KGN Industries, run by Ahmedabad-based Memon family, had re-listed at Rs 100 per share after nearly seven years in May 2008 this year. The stock had risen to a high of Rs 55,000.
Read more