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Showing posts from November 9, 2008

Hindalco strengthens after block deal

Hindalco Industries jumped 9.76% to Rs 66.35 at 14:53 IST on BSE, after a block deal of 5.24 lakh of equity shares was struck on the counter on BSE at Rs 66. Meanwhile, the BSE Sensex was up 487.67 points, or 4.89%, to 10,451.96. On BSE, 91.33 lakh shares were traded in the counter. The stock had an average daily volume of 22.55 lakh shares in the past one quarter. The stock hit a high of Rs 68.75 and a low of Rs 61.50 so far during the day. The stock has a 52-week high of Rs 202.74 on 15 November 2007 and a 52-week low of Rs 38.05 on 27 October 2008. The mid-cap stock had underperformed the market over the past one month till 7 November 2008, declining 36.23% as compared to the Sensex's decline of 14.80%. It had also underperformed the market in the past one quarter, declining 53.11% as compared to the Sensex's decline of 34.09%. The company's current equity is Rs 175.32 crore. Face value per share is Rs 1. The current price of Rs 66.35 discounts the compan…

Insiders' take advantage of low stock prices

Management, promoter groups step in to buy in select companies.
Srividhya Sivakumar BL Research Bureau If the frantic selling by foreign institutional investors in October has left you worried about how much lower valuations will go, here is a quantum of solace, for the month also saw many 'insiders' step in to buy stocks in their companies. Enticed by the 'attractive' valuations after the market meltdown, insiders appear to have indulged in buying in select companies even as the markets hit successive new lows throughout last month. Be it large companies such as L&T, Suzlon Energy and Hindalco, or the mid and small-cap ones such as Edelweiss, Gitanjali Gems and IVRCL Infrastructure, buying by insiders has been quite significant. Insiders, according to SEBI's Regulations (Prohibition of Insider Trading), are those investors who are in the know of that company's unpublished price-sensitive information. While in the case of L&T, it was the …

YES Bank: Buy

Investors can consider accumulating the YES Bank stock at the current market price (CMP) of Rs 81.9. The stock has gained 49 per cent from its all-time low of Rs 55 on October 27, but remains a good investment option for investors with a two-three year time frame. At the CMP, YES Bank is trading at 10.4 times its trailing twelve-month earnings and 1.7 times its latest book value. The Price-earnings multiple is at a discount to that of bigger private sector peers such as ICICI Bank, Axis Bank and HDFC Bank and is cheap for a bank which has high growth potential.Growth in advances While growth rates of the past two years may moderate on a larger base, healthy growth in corporate advances may result in above-industry growth rates for YES Bank. Its loan book is dominated by the wholesale business-corporate advances (58 per cent) and business banking (41 per cent).A high proportion of core 'other income' (43 per cent), negligible exposure to retail advances (0.15 per cen…