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Showing posts from July 6, 2008

Tata Steel strengthens

Tata Steel rose 2.41% to Rs 694.25 at 10:02 IST on BSE on reports the company plans to list a holding firm for steel and raw material assets outside India, on the London Stock Exchange to raise funds for acquiring iron ore and coal mines. Meanwhile, the BSE Sensex was up 57.98 points, or 0.42%, to 14,022.24. On BSE, 1.45 lakh shares were traded in the counter. The scrip had an average daily volume of 12.09 lakh shares in the past one quarter. The stock hit a high of Rs 700.20 and a low of Rs 662 so far during the day. The stock had a 52-week high of Rs 969.80 on 29 October 2007 and a 52-week low of Rs 471.07 on 17 August 2007. The world's sixth-largest steel maker had outperformed the market over the past one month till 9 July 2008, declining 17.41% compared to the Sensex's decline of 6.21%. It also outperformed the market in the past one quarter, declining 1.17% compared to Sensex's decline of 11.03%. The company has an equity capital of Rs 730.58 crore. Fac…

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 Mar…

Investors withdraw from SBI on reports of heavy notional losses on bond portfolio

State Bank of India lost 4.33% to Rs 1121 at 11:24 IST on BSE on reports it may suffer mark-to-market losses of about Rs 700 crore on its bond investments due to a fall in bond prices. On BSE, 1.31 lakh shares were traded in the counter. The scrip had an average daily volume of 4.04 lakh shares in the past one quarter. The stock hit a high of Rs 1144.90 and a low of Rs 1059.40 so far during the day. The stock had a 52-week high of Rs 2396.54 on 14 January 2008 and a 52-week low of Rs 1007 on 1 July 2008. The large-cap bank had outperformed the market over the past one month till 7 July 2008, declining 12.24% compared to the Sensex's decline of 13.14%. It had underperformed the market in the past one quarter, declining 30.04% compared to Sensex's decline of 13.23%. The bank has an equity capital of Rs 634.88 crore. Face value per share is Rs 10. The current price of Rs 1121 discounts its Q4 March 2008 annualised EPS of Rs 119.29, by a PE multiple of 9.39. On 26 J…

Opportunities abound

Ram Prasad Sahu / Mumbai July 7, 2008, 0:29 ISTWhile new entrants seek to carve out a share of the Indian telecom market, intensifying competition and declining revenues per user would lead to further consolidation over the next three years. The Idea-Spice Communications merger deal opens the way for further consolidation in the Indian telecom sector. While there are few smaller players left (HFCL Infotel, Shyam Telelink and Aircel), there are many new players waiting to roll out their networks in an already crowded telecom space. While new players are aiming to grab a share of the rapidly growing Indian market, their existence will depend on their ability to develop and sustain a low-cost business model in the intensely competitive market. This means, there could be more mergers and acquisitions over the next 24-36 months. But, the Idea-Spice deal, which appears to be at a premium, suggests that buy-outs won…

First Winner Industries loses on debut

First Winner Industries was trading at Rs 82.85 at 10:43 IST on BSE, a discount of 33.72% over the initial public offer price of Rs 125. The stock debuted at Rs 125 which was also its high so far during the day. However the stock was unable to sustain at higher levels and tumbled to hit an intra-day low of Rs 80.50 The counter saw volumes of 28.62 lakh shares on BSE Meanwhile, the BSE Sensex was down 388.85 points or 2.87% to 13,137.44 after fragile credit markets rattled Asian and US stocks. On Monday, 7 July 2008, a Lehman Brothers report said a pending accounting change could force Fannie Mae and Freddie Mac, the top US mortgage funders, to raise a combined $75 billion in capital at a tough time. First Winner Industries had priced the initial public offer (IPO) at the top end of the Rs 115 to Rs 125 price band. The issue was subscribed 1.26 times. The IPO opened on 9 June 2008 and closed on 17 June 2008. First Winner is engaged in the manufacture of grey fabrics and i…

Crompton Greaves: Buy

The company's focus on improving the profitability of its acquired subsidiaries is beginning to yield the desired results.

Acquired subsidiaries are adding muscle to the company's product profile. Vidya Bala AdvertisementCrompton Greaves' widening product basket and inorganic growth strategies have helped the company to transition to a complete power distribution and transmission solutions provider. With this, the company appears qualified to enjoy stock valuations commanded by the major power equipment players. At the current market price of Rs 240 , the stock trades at about 12 times its expected consolidated earnings for FY-10, which is a good discount to peers.Investors can consider buying the stock with a two-three year perspective. With the steep correction and continuing volatility seen in the stock market, investors can buy in small lots using declines linked to broad markets to best advantage. Crompton Greaves has on an absolute basis returned 80 per cen…