Thursday, August 04, 2005

Tata Power Surged by 3.00% on the news of Expansion plan by Chairman Ratan Tata


Tata Power gained 3% to Rs 422 after Chairman Ratan Tata said on Thursday
that the company plans to invest Rs 18,500 crore over the next five years on
new projects.
21,000 shares changed hands in the counter on BSE by the first few minutes
of trade.
In a firm market, the Tata Power (TPC) stock made a solid rebound since the
middle of April 2005 after a volatility was witnessed in the stock during
January 2005 till mid-April 2005. From a low of Rs 332.30 on 18 April 2005,
the stock bounced back to Rs 408.40 by 4 August 2005.
Ratan Tata, at the company’s AGM in Mumbai said that the company is looking
at setting up a 500 MW plant in South Africa at an investment of Rs 2,000
crore, with an international joint venture partner.
He also said that TPC will explore opportunities in the nuclear power
generation especially in the wake of the Indo-US nuclear initiative. He said
Tatas have got the engineering expertise, and the final outcome on this
front will be possible only after the final agreement between India and US
on the usage of unclear capabilities.

Bears dog Indiabulls after GDR issue is priced at a discount


<b>Indiabulls slumped 4.75% to Rs 235 and registered volumes of 5.71 lakh
shares on BSE today.</b>
The scrip's intra day high was Rs 247.70.
Earlier, Indiabulls witnessed a solid surge - from the close of Rs 173.85 on
19 July 2005, it marched to an all time high of Rs 257.75 on 1 August 2005
after the company announced strong June quarterly results.
Indiabulls has priced its Rs 260-crore GDR issue at a discount to the
prevailing market price. The company has priced each Global Depository
Receipt (GDR) at $ 5.42 (approximately Rs 235). Each GDR is equivalent to a
share of Rs 2 each. The GDR was priced at 4.6% discount to Wednesday’s
closing price of the scrip on BSE.
The main object of this GDR issue is the expansion of the company's network.
The company is in the process of rolling the consumer finance business
across the country, and expects it to be a major driver of growth and
profitability in 2005-06.
Indiabulls' net profit improved sharply to Rs 40.93 crore in Q1 June 2005
from Rs 5.54 crore in Q 1 June 2004. Total income during the same period
surged 326% to Rs 98.63 crore from Rs 23.13 crore.
Indiabulls has a presence in equity, debt, derivatives and commodity
brokerage, depository services and distribution of insurance, mutual funds
and initial public offerings. It plans to venture into various retail
financial services segments such as housing finance, consumer goods lending,
non-bank deposits and insurance services.

New order win spurs L&T - Up by 3.4%


Larsen and Toubro is currently up 3.40% to Rs 1,335 on volumes of 89,848
shares.
The intra day low was Rs 1,294 here.
After witnessing a sharp surge during mid-June 2005 to mid-July 2005, the
stock later came off the higher level ahead of the results announcement.
From a lifetime closing peak of Rs 1,296.25 on 20 July 2005, the stock
retreated to Rs 1,224.75 by 27 July 2005.
The marketmen had probably got wind of the likely order yesterday itself,
which was reflected in 3.8% rise to Rs 1291.55 on that day.
As per reports, Tata Steel has placed order for a new 2.5 million tonne per
annum (MTPA) blast furnace with a group of engineering companies headed by
Larsen & Toubro. "The 2.5 MTPA blast furnace order given to the consortium
of L&T, Paul Wurth-Italia and Paul Wurth-India is part of the next phase of
the company's expansion plans," Tisco said in a release issued to BSE today.
This is the second major order in this phase of expansion as it had placed
order for the 2 MTPA sinter plant with L&T and Outokumpu, the release added.
The company, day-before-yesterday, signed a memorandum of understanding to
set up a plant in China to manufacture air circuit breakers used in
electricity transmissions.
L&T reported 78% jump in Q1 June 2005 net profit to Rs 142.97 crore compared
to Rs 80.13 crore in Q1 June 2004. L&T’s total income rose 17.7% to Rs
3,183.81 crore compared to Rs 2,703.37 crore in Q1 June 2004.
Meanwhile, L&T has decided to exit the tractor business by selling its stake
in a joint venture with Deere & Co in favour of its joint venture partner
Deere. L&T said it would focus on its core businesses of engineering and
construction, electricals and electronics and information technology.

Shringar Cinema is currently up 18.1% to Rs 84.2 on volumes of 10.18 lakh shares


This is an all-time high for the scrip. It recovered smartly ever since it
closed at a discount on listing at Rs 45.15 on 29 April 2005. It rallied to
close at all time high of Rs 75.75 on 26 July 2005 as the company’s business
prospects improved sharply.
For Q1 ended 30 June 2005, Shringar Cinema scaled down its net loss by 50%
to Rs 1.2 crore as against a loss of Rs 2.4 crore in the quarter ended 31
March 2005. Net sales moved up to Rs 5.9 crore in the current quarter from
Rs 3.5 crore in the quarter ended 31 March 2005.
The company's operating profit stood at Rs 10.5 lakh in the current quarter
against an operating loss of Rs 1.3 crore in the quarter ended 31 March
2005.
Earlier, Shringar Cinema came out with an IPO, on 5 April 2005, totaling
81.50 lakh equity shares of Rs 10 each via book building route in the price
band of Rs 47 to Rs 53 per share. The issue closed on 11 April 2005, and got
oversubscribed 8.26 times. The company later pegged the IPO price at Rs 53
per share.
Shringar Cinema is in the business of film distribution and exhibition. The
company first made its presence felt in the multiplex business through a
joint venture - Fame Adlabs - at Versova, Mumbai. This joint venture was
between the company (holding: 50.01%) and Adlab Films. The distribution
business of the company was managed under a 100% subsidiary - Shringar Films
Pvt. Ltd.
The company currently operates four multiplexes under the brand name, Fame.
The Fame Adlabs (Swanston Multiplex Cinema) situated at Versova, Mumbai, is
a joint venture with Adlabs Films, while the other two at Malad and Nasik
are fully owned. Another multiplex is located at Kandivali in Mumbai, which
was launched on 10 June 2005.

Steel Stocks Stregthen - Steel stocks were on a romp for the second consecutive day after Morgan Stanley raised its outlook for the global steel sector.


Sail jumped 4% to Rs 56.65, Tisco rose 3.3% to Rs 380.35, Ispat Industries
rose 2.8% to Rs 20.20, Bhushan Steel gained 2.3% to Rs 176.95, Uttam Galva
Steel rose 2.2% to Rs 44.80, and Essar Steel gained 2% to Rs 51.50.
Sail rose on high early volume of 33 lakh shares. 9.9 lakh shares changed
hands in Tisco, 6.9 lakh shares got traded in Ispat and 3.7 lakh shares
changed hands in Essar Steel.
On Wednesday (3 August 2005), Sail jumped nearly 3% to Rs 54.45 but Tisco
lost 1.4% to Rs 368.10.
Steel companies cut spot prices for August 2005 in line with the softening
of international prices.

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