Thursday, August 11, 2005

Swaraj Mazda in top fear

Swaraj Mazda jumped 6% to Rs 404 on reports that Sumitomo Corporation
proposes to acquire Mazda Motor Corporation’s 15.62% stake in Swaraj Mazda.
The acquisition will be at Rs 303.32 per share – a huge discount to
Wednesday’s closing price of Rs 380.
9,071 shares changed hands in Swaraj Mazda by afternoon trade.
Over the past few months Swaraj Mazda stock was the subject of high
volatility due to alternate bouts of buying and selling. The stock moved
between a low of Rs 294 and a high of Rs 404 since early December 2004.
Sumitomo Corporation has been raising stake in Swaraj Mazda. Recently, it
acquired Punjab Tractors’s 15% stake at Rs 400 per share. Following the
latest acquisition, Sumitomo now holds 41.03% stake in Swaraj Mazda.
Earlier, UK-based private equity fund Actis had opposed Punjab Tractors’
sale of 15% stake in Swaraj Mazda in favour of Sumitomo.
It may be recalled that Actis (formerly CDC Capital Partners), which
indirectly owned a slice of Swaraj Mazda through Punjab Tractors, had picked
up shares of Swaraj Mazda from the secondary market. Earlier, Actis acquired
Punjab government's 24% stake in Punjab Tractors.

Order win injects Hindustan Bio Sciences with gains

Hindustan Bio Sciences is currently up 8.77% to Rs 19.85 on volumes of 28.47
lakh shares.
The high for the day on the counter is is Rs 20.6, while the low is Rs 18.5.
The stock was range-bound for the past few months in the absence of any
Today, Hindustan Bio Sciences informed BSE that it received an order for an
antiretroviral drug for a value of Rs 26.93 crore from China.
In July 2005, Hindustan Bio Sciences received an approval from Genetic
Engineering Approval Committee (GEAC) for the import and marketing of
recombinant human Erythropoietin (brand name Eposino) manufactured by
Shandong Kexing Bioproducts Company, China. The present market of
Erythropoietin is estimated at US$ 8.6 billion globally, and Rs 70 crore in
Hindustan Bio Sciences is engaged in the bio technology sphere, as well as
in pharmaceuticals. The company acquired the shares of Venkar Chemicals
during the year 2004 and, consequent of this acquisition, Venkar Chemicals
has become a wholly owned subsidiary of the company with effect from 19
August 2004.
For the quarter ended June 2005, the company posted a net profit of Rs 0.02
crore on net sales of Rs 0.10 crore.

Tata Tea spurted 7% to Rs 807 on major acquisition plans

Tata Tea spurted 7% to Rs 807, extending what has been a solid surge in the
counter in the past few days.
1.2 lakh shares were traded in the counter on BSE
The stock rose 3.3% on Wednesday (10 August 2005) to a lifetime closing high
of Rs 754.05. The sharp rally in the counter in the past two days came about
following media reports that Tata Tea is zeroing in on a major $ 1-billion
overseas acquisition of either a brand or a company or both with a strong
presence in the US or Latin America, during the next six months.
The stock has surged since late July 2005 on the back of encouraging Q1 June
2005 results. From a low of Rs 667.85 on 27 July 2005, the stock spurted to
Rs 729.60 by 9 August 2005.
Past few months have seen the stock gallop partly boosted by the company’s
decision to focus on the branded tea business. From a low of Rs 457.90 on 17
January 2005, the stock spurted 59% in short while to Rs 729.60 by 9 August
In its strategic move to focus on branded tea, Tata Tea recently transferred
its 16 estates in south India to a newly formed company. Further, the
company’s board has approved the merger of Tata Tetley, which is a 100%
subsidiary of the company, with the company.
Tata Tea’s strength lies in its strong presence in global markets. Despite
the instability in tea prices, company has been able to produce quality
products through blending of different varieties of tea, which it sources
from across the globe.

BSNL order has GR Cables wired to gains - GR Cables is up by 8.65%

GR Cables is currently up 8.65% to Rs 13.31 on 13.31 lakh shares.
The intra day high for the counter was Rs 13.7, which happens to be the new
all time high here. The low was Rs 12.58.
The stock had been on the rise from the close of Rs 8.91 on 30 June 2005, to
streak to a high of Rs 12.62 on 4 August 2005.
GR Cables today said it secured an order worth Rs 2.5 crore from BSNL for
polythene insulated jelly-filled cables used in telecommunication.
Only yesterday , the telecom cable maker GR Cables had stated that it
received an order of the size of approximately Rs 20 crore from BSNL. One
more positive is the fact that the company has ascertained that cable prices
are 6-7% higher this year from last year.
The company, last month, diversified from manufacturing housing wires and
cables to a range of electrical fittings and accessories for giving complete
housing solutions by introducing new models. This range is in addition to
the wide range of modular switches and circuit breakers launched recently.
The company posted turnaround results for the quarter ended 30 March 2005,
by reporting a net profit of Rs 0.16 crore (net loss of Rs 0.22 crore). Net
sales zoomed up 163.1% to Rs 7.13 crore (Rs 2.71 crore).

Hindustan Construction Company ended at the highest point of the day with gains of 3.7% to Rs 710

Volumes amounted to 5,092 shares on the counter. The low for this counter
was Rs 634.
From the close of Rs 520.95 on 21 June 2005, the counter rallied to a high
of Rs 684.6 yesterday on the back of booming construction industry and
consistent order flows coming in.
Hindustan Construction Company (HCC) informed BSE that it won a contract for
construction of the Pir Panjal Tunnel from Ch.152+600 to Ch.158+730 (Zone-
VA) on Laole- Qazigund section of Udhampur - Srinagar - Baramulla New BG
Railway Line Project from IRCON International, New Delhi. The value of the
contract is Rs 218.35 crore.
The Walchand group construction major, HCC is one of the largest
construction and infrastructure building company in the country. It
specializes in the construction activities from diversified areas like
Hydel, Power, Roads, Bridges, Dams, Barrages, Marine Works, Buildings and
Environmental Projects in both domestic as well as international markets.
For the quarter ended 30 June 2005, the company posted a 71.54% jump in net
profit to Rs 22.66 crore (Rs 13.21 crore). Net sales increased 32.1% to Rs
461 crore (Rs 349.22 crore).

FII limit in Mahindra Gesco is increased to 30%

Mahindra Gesco is currently up 4.22% to Rs 224.9 on volumes of 26,714
The scrip hit a high of Rs 226.4 and low of Rs 216.9 in intra day trades.
The counter witnessed solid spurt and has doubled in less than two months
due to the all round boom in construction sector.
Mahindra Gesco informed that its shareholders have approved the increase in
FII investment ceiling in the company to 30% of the equity at the AGM of
shareholders held yesterday. The promoters currently hold 55% stake while
the public holds 13.85% stake. The total FII holding in the counter as on 30
June 2005 is 23.22%.
Mahindra Gesco is one of the larger players in the organised sector for
property development and consulting. The company has presence in Mumbai,
Delhi and Pune, and with an impressive list of clientle which include
multinationals like Cisco, Ericsson, Heinz, Microsoft and Motorola. The
company plans to expand its activities to all major cities in the country.
For the quarter ended 30 June 2005 , the company reported an 81.7% jump in
net profit to Rs 2.29 crore (Rs 1.26 crore). Net sales increased 60.1% to Rs
24.61 crore (Rs 15.37 crore).

Kale Consultants bags new order from Filippino carrier and flies high

Kale Consultants jumped 8% to Rs 109 after the company bagged a contract
from a Filippino carrier.
34,318 shares were traded in the counter on BSE.
The stock made headway in the past one year on the back of a strong order
flow for its airline suite. From Rs 33.50 on 23 June 2005, the stock leaped
up to a high of Rs 112.35 on 19 July 2005. The stock later came off the
higher level on profit taking.
Kale Consultants said on Wednesday that Cebu Pacific has signed a five-year
contract for REVERA TM - the comprehensive passenger revenue accounting
solution of Kale Consultants. It did not indicate the value of the deal.
Last month, Kale Consultants said its cargo solution suite would be used by
Indian Airlines for the airline's entire domestic and international network
and includes the provision and maintenance of equipment at Indian Airlines'
Kale Consultants is now entirely focussed on the airlines and travel
verticals. In FY 2004, the company undertook a major restructuring of
operations, and this included the transfer of its banking products division
to Onward Technologies.
In October 2003, Kale Consultants acquired Cognosys Software - a leading
software developer for the travel sector. It has re-branded Cognosys as
`Kale Travel Technology Division'.

New order win has IVRCL Infrastructures moving up

IVRCL rose 4.5% to Rs 684.8 on volumes of 69,894 shares.
It had hit a high of Rs 695 in intra day trades. The low for the day was Rs
From Rs 486.6 on 30 June 2005, the stock rallied all the way to finally
close at a high of Rs 687.9 on 5 August 2005 on the back of booming
construction sector. It closed at Rs 655.35 yesterday after some profit
taking emerged at higher level.
IVRCL Infrastructures today announced that it bagged an order for 100 MLD
Sea Water Desalination Plant at Minjur, Chennai on Design, Build, Own,
Operate and Transfer (DBOOT) basis to be transferred after 25 years. The
estimated cost of the Project would be around Rs 500 crore. It is proposed
to implement the project through a Special Purpose Vehicle (SPV)
incorporated under the Companies Act jointly with its technical partner M/s
intended for supply of Drinking water to Chennai.
Earlier last week, IVRCL stated a healthy order book position (as of 5
August 2005 of Rs 2,550 crore), which improved by a further Rs 600 crore
following orders bagged by the power and water divisions. The new order
comprised of power for Rs 460.20 crore and water of Rs 139.80 crore.
IVRCL undertakes turnkey contracts for the execution of civil engineering
works. It is mainly engaged in the construction of bridges, canals, roads,
tenements, mass housing, spinning mills, industrial structures, towers,
chimneys, bridges, large-diameter pipelines, etc.
For the quarter ended 30 June 2005, the company came out with a 59.1% rise
in net profit to Rs 17.06 crore (Rs 10.72 crore). Net sales grew 28.3% to Rs
300.7 crore (Rs 234.4 crore).

HMT soars after renewed disinvestment proposal

HMT flared 24.11% to Rs 87 on volumes of 8.91 lakh shares, after hitting an
intra-day high of Rs 94.
The low for the day so far was Rs 74.
The stock almost doubled in few weeks time from the close of Rs 45.15 on 11
July 2005 to close at a high of Rs 89.15 on 20 July 2005 after hitting a new
all time high of Rs 96.85.
As per reports, Hindustan Machine Tools (HMT) may get a fresh lease of life
from the UPA government. Sources reveal that the ministry of heavy industry
and public enterprises will soon announce a revival package for the
state-owned tractor manufacturing company. To begin with, the government is
expected to release around Rs 750 crore for HMT and some of its
subsidiaries, including the tractor manufacturing facility at Pinjore. This
step by the government is in consonance with the stated policy of not
disposing of profit-making public sector units (PSUs).
It has been quiet a remarkable turnaround for HMT, as not long ago, the
company was deep in red. For the full year ended 31 March 2005, the company
made a net profit of around Rs 6.04 crore, compared to a loss of Rs 7.97
crore in the previous year. The revival package may include availability of
new loans and funds for upgradation purposes. Reports say an MoU may be
signed between HMT Tractors and Mitsubishi to manufacture multi-utility
vehicles at Pinjore.
HMT, a PSU, is engaged in the manufacture of machine tools, industrial
machinery, watches, lamps, tractors, and printing machines among other
articles. The President of India holds 98.22% stake (46.76 crore shares) in
the company. Presently, HMT’s tractor unit is riding high on the success of
HMT Yuva, a low-power tractor priced at around Rs 1.25 lakh. Apart from the
tractor-manufacturing unit, a HMT holding company, based in Bangalore, has
six other subsidiaries.
For the quarter ended 30 June 2005, the company posted a lower net loss of
Rs 1.56 crore (net loss of Rs 15.51 crore). Net sales increased 14.39% to Rs
49.04 crore (Rs 42.87 crore).

Open offer brings Sangam India UP

Sangam India is currently up 8.66% at Rs 59 on volumes of 2.75 lakh shares
in early trades.
The counter had hit a new all time high of Rs 60.70 in initial moments of
session. In the meanwhile, it also touched an intra-day low of Rs 57.25.
The counter witnessed a mild rally from Rs 44.15 on 21 June 2005 to Rs 54.3
yesterday on the back of strong results.
Sangam India moved strong today, in early trades, after ICICI Venture Funds,
along with promoters of the company, announced an open offer to acquire
63.65 lakh shares of the company (representing 20% stake) at Rs 47.10 per
share. ICICI Venture Funds invested Rs 42.50 crore in Sangam India, which is
engaged in the manufacture of PV dyed yarn and fabric. Sangam India markets
its products under the brand name ‘Sangam’.
For the quarter ended 30 June 2005, the company posted a 41.5% rise in net
profit to Rs 4.16 crore (Rs 2.94 crore). Net sales increased 7.1% to Rs
73.96 crore (Rs 69.04 crore).

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