Tuesday, August 09, 2005

Probable acquisition by M&M has Ramkrishna Forging forging ahead

Ramkrishna Forging is currently up 5.25% to Rs 96.4 on volumes of 3.71 lakh shares.

The stock is currently exhibiting volatility, having hit an intra-day high of Rs 100.9 (a new all time high). It also hit an intra-day low of Rs 92.5.

The stock gained sharply form Rs 78.55 on 27 July 2005 to close at Rs 91.65 yesterday following the news of the acquisition move.

There are reports in the print media that M&M is in talks to acquire a 51% stake in the Jamshedpur based Ramkrishna Forging. The management of both companies refused to comment on the development , however.

Ramkrishna Forging is also understood to be looking for a strategic partner. The Jalan family holds 55% stake in the company, while the rest is held by the public and institutions. The company has three plants, and the fourth is in the process of being commissioned. When that takes effect, the capacity will increase to 35,000 tonnes a year.

The company is an OE supplier to the Tatas. The latter accounts for 40% of the company's turnover. Exports account for 10%. The company manufactures cast iron forgings along with screw couplings, draw gear assembly, snubber assembly, hanger, block hanger side frame key and various other forgings items of railway coaches and wagon to land and air defences, thermal plants, steel plants and the mining industry.

For the quarter ended June 2005, the company posted a 31.6% rise in net profit to Rs 1.25 crore (Rs 0.95 crore). Net sales jumped 66.3% to Rs 18.43 crore (Rs 11.08 crore).


Asian Electronics lights up

Asian Electronics leaped up 5% to Rs 192, which happens to be the maximum permissible limit (5%) for a day for the stock, following the company's announcement its board has okayed a MoU to buy at least 50% of US based Westinghouse Lighting Corp.

The last few months saw the Asian Electronics stock gallop higher. From a low of Rs 66.90 on 29 March 2005, the stock spurted to Rs 182.90 by 8 August 2005.

At present, Asian Electronics has a joint venture with Westinghouse for exports to the US market.

Mumbai-based Asian Electronics is involved in designing and manufacturing energy efficient products.

For Q4 March 2005, Asian Electronics reported a robust financial performance. The company turned out a net profit of Rs 7.05 crore as compared to a net profit of Rs 1.24 crore in Q4 March 2004. Net sales jumped 55.5% to Rs 37.06 crore.

Bharat Earth Movers gets fork-lifted on second public issue proposal

Bharat Earth Movers is currently up 3.2% to Rs 690 on volumes of 58,855 shares.

It has touched an intra-day high of Rs 700 in early trades. The stock
has rocketed sharply from Rs 595.85 on 6 May 2005 to Rs 700.4 on 16
May 2005 on sustained buying interest. The stock more than doubled
from Rs 338.5 on 3 January 2005.

Bharat Earth Movers informed BSE that a meeting of the board of
directors of the company will be held on 2 June 2005, to consider
increase in the authorised capital of the company and to deliberate on
making a public issue.

Bharat Earth Movers is hopeful of getting an order worth Rs 1,000
crore from the Sri Lankan government. The company earlier this month
participated in the bidding process for rebuilding parts of the Sri
Lankan rail network destroyed by the December 2004 tsunami. The
company has a healthy order book position, which stood at Rs 2,003
crore as on 31 March 2005.

Bharat Earth Movers is a Government of India engineering PSU. For Q4
ended 31 March 2005, net profit rocketed 560% to Rs 123.62 crore from
Rs 18.71 crore in the corresponding quarter a year ago. Total income
during the same period jumped 38.7% at Rs 807.18 crore from Rs 581.97
crore a year ago.


Bharti Tele-Ventures wired to gains on vibrant July subscriptions

Bharti Tele-Ventures shed off its downward trend following reports that the cellular services major's number of GSM wireless users grew by 5.33 lakh in July 2005.

Bharti Tele-Ventures (BTL) stock was up 1.1% in late trading to Rs 294. The news hit the market towards the fag end of trading. The stock had meandered lower earlier during the day. It had fallen about 0.5% by mid-afternoon ahead of the announcement. 17.9 lakh shares were exchanged in the counter on BSE.

The scrip nudged lower by 0.7% to Rs 290.65 on Monday (8 August 2005) in a weak market. The stock jumped up in the past few days in a firm market. Rising subscription and strong Q1 June 2005 results gave the counter the zing to rise. From a recent low of Rs 249.80 on 20 July 2005, the stock soared 17.2% to Rs 292.85 by 5 August 2005.

BTL's addition by way of new subscriptions, of 5.33 lakh, in July 2005 was much higher than the addition of over 4 lakh users each in May 2005 and June 2005. The company's total subscriptions, as at end July 2005, stands at 12.789 million.

Meanwhile, BTL has decided to outsource its call centre operations to four companies in a three-year contract estimated at $ 230 million. Nortel Networks would provide the call routing and prioritization technology to these back office firms.

BTL's consolidated net profit, as per Indian GAAP, has jumped 96.8% to Rs 470.47 crore from Rs 239.04 crore in Q1 June 2004. Consolidated total income rose 45.8% to Rs 2,527.39 crore from Rs 1,733.15 crore


Expansion plans buoy up CCL Products

CCL Products is locked up at the 5% upper circuit filter at Rs 372.4 on volumes of 2.29 lakh shares.

This is also a new all time high for the counter.

Earlier, the counter had witnessed solid surge from the close of Rs 188.45 on 30 June 2005 to Rs 354.7 yesterday. This materialised as the result of firm commodity prices and due to the company's expansion of varied coffee products and strong June quarterly results. The counter surged 77% in last one month.

CCL Products, a company engaged in coffee business is in the midst of major expansion plans (as per reports). It is increasing its present spray-dried capacity and diversifying its product mix to include freeze-dried and freeze concentrated liquid coffee and considering overseas locations for production of instant coffee. It is a leading exporter of coffee from India.

The company recently expanded its spray-dried capacity to 6,000 tpa and will further increase the capacity by at least 1,000 tpa every year to attain a size of 10,000 tpa, within the next four years. The total capital expenditure for the same is estimated at around Rs 25 crore. The company is also setting up a freeze-drying plant with capacity of 1,500-2,000 tpa, which is expected to go on stream by September and is producing freeze concentrated liquid coffee on a trial basis at its present facility and expects to commercialise the same by end of this fiscal.

Japan is the major market for this product and it commands a huge premium (of almost $10/kg) over conventional freeze and spray dried instant coffee.

For the June quarter, CCL Products' net profit surged 94% to Rs 7 crore from Rs 3.6 crore a year ago, while net sales jumped 81% to Rs 27.5 crore from Rs 15.2 crore for the same period.


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