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Showing posts from May 4, 2008

Aro Granite shines on bonus issue

Aro Granite Industries gained 1.53% to Rs 113 at 14:26 IST on BSE after the company said its board has approved to issue bonus shares in the ratio of 1:2. On BSE, 44,534 shares were traded in the counter. The scrip had an average daily volume of 4,883 shares in the past one quarter. The stock hit a high of Rs 119.80 and a low of Rs 111 so far during the day. The stock had a 52-week high of Rs 142 on 16 January 2008 and a 52-week low of Rs 65.70 on 19 March 2008. The small-cap scrip had outperformed the market over the past one month till 8 May 2008, gaining 25.98% compared to the Sensex's return of 8.17%. It had also outperformed the market in the past one quarter, rising 17.34% compared to Sensex's decline of 2.20%. The company's current equity is Rs 7.02 crore. Face value per share is Rs 10. The current price of Rs 113 discounts its Q3 December 2007 annualised EPS of Rs 14.64, by a PE multiple of 7.72. Aro Granite Industries' net profit declined 28.4% …

LOW P/E STOCKS, STRONG BUYS

1] Kalindee Rail Nirman:

It is engineering and construction company mainly specializing and
executing rail projects. The company is likely to be a major
beneficiary of the investment projects announced in the Railway Budget
like construction of new tracks, modernization of platforms, and
commencement of work on dedicated freight corridors. The company
already has a very strong order book of around Rs 500 crore and is
likely to get another Rs 200-300 crore worth of orders in the next few
months. It came out with fantastic results for the last December
quarter with net profits nearly doubling at around Rs 6.2 crore. The
expected EPS for FY09 would be Rs 29. It is thus available at multiple
of 10 times FY09 earnings. I expect the company to achieve a target of
Rs 550 in the next 12 months

2] Jyoti Structures
"JSL reported a top line jump of 35% YoY to Rs 4.1 billion. On a
12MFY08 basis, top line growth was a healthy 41% YoY. EBIDTA for JSL
during 4QFY08 jumped 33% to Rs 515 million. A…

NSE revises price band of 286 stocks

Our Bureau Mumbai, May, 7 The price bands of the securities of 286 companies listed on the NSE have been revised with effect from Thursday, a circular issued by the exchange said.In case of 282 companies the price band has been moved upward and in case of four it has been revised downward, according to the NSE circular. "As many as 240 securities on which derivative products are available shall continue to have daily operating range of 20 per cent," the NSE said

Arvind Mills gains in value and volume

Arvind Mills jumped 5.02% to Rs 55.45 on BSE on reports its 99% subsidiary Arvind Brands has signed a licensing agreement with Hartmarx Corp, a Chicago-based men's tailored clothing company. Meanwhile, the BSE Sensex was down 272.39 points or 1.57% to 17,066.92 on negative cues from global markets. US markets suffered sharp losses on Wednesday, 7 May 2008, on worries about inflation and higher interest rates as oil jumped to a record. On BSE, 43.26 shares were traded in the counter. The scrip had an average daily volume of 14.15 lakh shares in the past one quarter. The stock hit a high of Rs 56.30 and a low of Rs 52.05 during the day. The stock had a 52-week high of Rs 93.50 on 31 December 2007 and a 52-week low of Rs 34.25 on 24 March 2008. The small-cap scrip had outperformed the market over the past one month till 7 May 2008, advancing 34.52% compared to the Sensex's return of 11.24%. It also outperformed the market in the past one quarter, gaining 1.73% compa…

Bonus record date powers Reliance Power

Reliance Power gained 2.05% to Rs 419.60 at 13:43 IST on BSE, extending its recent rally, ahead of the record date for bonus issue. From Rs 387.50 on 25 April 2008 - the day when the company set 2 June 2008 as the record date for bonus issue, the stock has gained 8.28%. On BSE, 49.60 lakh shares were traded in the counter. The scrip had an average daily volume of 54.48 lakh shares in the past one quarter. The stock hit a high of Rs 426.90 and a low of Rs 406.65 so far during the day. The stock had a 52-week high of Rs 599.90 on 11 February 2008 and a 52-week low of Rs 303.45 on 24 March 2008. The large-cap scrip had outperformed the market over the past one month till 7 May 2008, advancing 17.12% compared to the Sensex's return of 11.24%. The company's current equity is Rs 2,259.82 crore. Face value per share is Rs 10. At the current price of Rs 419.60, the scrip trades at a PE multiple of 999.04, based on full year ended March 2008 EPS of Rs 0.42. In a meeting…

Aishwarya Telecom rings loud on debut

Aishwarya Telecom was trading at Rs 74.25 at 10:35 IST on BSE, a sharp premium of 112.14% over its issue price of Rs 35 The counter saw high volumes of 1.10 crore shares on BSE Earlier today, the Aishwarya Telecom stock debuted at Rs 50.10 on BSE, a premium of 43.14% over its issue price of Rs 35. The stock hit a high of Rs 76.90 and a low of Rs 50.10 so far during the day. Aishwarya Telecom had fixed the issue price at Rs 35 per equity share for its with initial public offering of 40 lakh shares. The initial public offer of Aishwarya Telecom was subscribed around 20 times. The company will use the proceeds of the issue to increase its manufacturing capabilities and infrastructure, fund research projects and for general corporate purposes. Aishwarya Telecom mainly supplies its products to major telecom operators. The company also manufactures products for telephone service providers, defence sector, railways, telecom equipment companies and cable TV operators. It also ex…

New order win engineers Patel Engineering's rally

Patel Engineering gained 2.82% to Rs 612.50 at 12:04 IST on BSE after its unit's joint venture in the United States received a dam reconstruction contract worth $280 million. On BSE, 1.06 lakh shares of the scrip were traded. The stock had an average daily volume of 26956 shares on BSE in past one quarter. The scrip had touched a high of Rs 632 and a low of Rs 600 so far during the day. The stock had hit a 52-week high of Rs 1070 on 4 January 2008 and a 52-week low of Rs 346 on 7 May 2007. The scrip had undererformed the market over the past one month till 5 May 2008, gaining 4.69% compared to the Sensex's return of 14%. It had also underperformed the market in the past one quarter, declining 20.40% compared to Sensex's decline of 6.28%. The mid-cap civil engineering firm has an equity capital of Rs 5.97 crore. Face value per share is Re 1. At the current price of Rs 612.50, the scrip trades at a PE multiple of 26.05, based on Q3 December 2007 annualised EPS…

No vacancy

Ram Prasad Sahu / Mumbai May 5, 2008Despite worries of a supply glut, the long-term story for the hotel sector is intact. With the exception of Bangalore, room rates have surged up to 21 per cent in the premium category in key tourist and business destinations in the country. It is this pricing power brought on by a lack of supply, which is prompting a slew of domestic and international players to build hotels across the country to catch the price upturn. The Ministry of Tourism estimates that about 80,000 new rooms will be added to the existing capacity of about 1 lakh rooms across all categories by 2010. The demand by that time will however shoot up to 1.5 lakh rooms.

No room
The tourism ministry believes that as the economy expands, the extreme shortage of rooms will be particularly felt in Delhi, Mumbai, Bangalore and Goa—the hubs of tourist traffic. Unprecedented tariffs in these locations and increases ranging …