Tuesday, August 16, 2005

Industrial Organics Ltd - Rights Issue

Industrial Organics Ltd has informed BSE that a meeting of the Board of
Directors of the Company will be held on August 20, 2005, inter alia, to
consider the following:
1. Further issue of equity shares to the existing shareholders of the
Company (Right issue).
2. Preferential Allotments of Warrants under Section 81 (1A) of the
Companies Act, 1956.

Ind Swift Laboratories lacks running power after GDR is priced at a discount

Ind Swift Laboratories is currently trading 2.51% lower at Rs 218.70 on
volumes of 7.64 lakh shares.
The counter witnessed volatility so far today, hitting a high of Rs 235.5
and low of Rs 213.
On Friday the scrip leaped up 13.85% to Rs 224.15 from Thursday’s closing of
Rs 196.85 ahead of its GDR pricing. Market men expected the GDR to be priced
at premium.
Ind Swift Laboratories today informed BSE that it has successfully raised US
$ 10.625 million through the issue of 2.50 million Global Depository
Receipts (GDRs), each representing one underlying equity share of Rs 10
each. The GDRs will be listed shortly on the Luxembourg Stock Exchange.
Elara Capital Advisors, London acted as lead manager to the issue.
The GDR was priced at $ 4.25 (Rupees 186) per GDR against the closing price
of Rs 196.85 per share on BSE on 11 August 2005. Further, the company
informed that the board meet of the company was held on 12 August 2005, to
issue 25 lakh underlying equity shares of Rs 10 each.
Ind-Swift Laboratories, a part of the Swift Group, concentrates on the
manufacture of Active Pharmaceutical Ingredients (API) advanced
intermediates. The company has a presence across 45 countries and one wholly
owned subsidiary in the US . Presently, 30% of the group turnover is
contributed to by exports.
Ind-Swift Laboratories’ net profit jumped 251.05% to Rs 10.04 crore from Rs
2.86 crore in Q1 ended June 2005. Net sales rose 81.75% to Rs 79.97 crore
from Rs 44 crore.

FMCG stocks in demand

FMCG shares marched up, consolidating on the recent uptrend, on the ground
that prospects of a good crop this year would mean that rural demand would
be strong.
Henkel SPIC India gained 4% to Rs 30.25, Rayban Sun rose 3% to Rs 90.60,
Britannia gained 3.3% to Rs 1,100, Bata India rose 3% to Rs 146, shaving
products major Gillette India gained 3% to Rs 718, Tata Tea gained 2% to Rs
805, Nirma rose 1.5% to Rs 452.90, FMCG giant Hindustan Lever rose 1.1% to
Rs 170.55 and Marico gained nearly 1% to Rs 282.80.
ITC was up slightly by 0.4% to Rs 1,700.
From a recent low of Rs 160.20 on 9 August 2005, HLL has risen 6.4% to
current Rs 170.55. Colgate has gained 11.8% to current Rs 252.50 from a
recent low of Rs 225.70 on 29 July 2005.
Dabur India has risen 6.9% to current Rs 155.60 from a recent low of Rs
145.45 on 9 August 2005.
In recent months, FMCG stocks bounced back with a number of leading
companies like Hindustan Lever, Colgate, Britannia etc. regaining pricing
power. Companies hiked prices in segments like toothpaste, shampoo,
detergents, biscuits etc.
Following the recovery of rains in July 2005 – a crucial sowing month, the
prospect for crops this year are good which would transform into a good
rural demand for FMCG firms. Rural demand is a major demand driver for fast
moving consumer goods.

Order win propels Bhel to a record high

Bhel is currently trading 5.5% higher at Rs 1,117 on volumes of 1.6 lakh
The counter touched a new all time high of Rs 1,089 in intra day trades. The
low for the day was Rs 1,058.
The counter had rallied from Rs 847 on 14 June 2005 to Rs 1,085.7 on 5
August 2005 on the back of consistent order inflow and healthy order book.
Bharat Heavy Electricals (BHEL), on Friday after market hours, announced the
dbagging of a Rs 26-crore order from Ethiopian Electric Power Corporation
(EEPCO), Ethiopia for setting up 230-KV substations on turnkey basis.
Chinese and other multinational companies were in the race for this project.
The World Bank-funded project is part of the rural electrification programme
initiated by the Ethiopian government.
Bhel won a major Rs 900-crore contract for two power projects in Oman in the
last week of July this year. The order was placed by the government run
Petroleum Development Oman.
PSU power equipment major Bhel manufactures major capital equipment and
systems like captive power plants. The Government of India holds 67.72%
stake in Bhel as of June 2005.
For the quarter ended 30 June 2005, the company reported a 444.82% spurt in
net profit to Rs 127.87 crore (Rs 23.47 crore). Net sales during the same
period increased 65.44% to Rs 1,936.59 crore (Rs 1,170.54 crore).

Sandesh flares to new high on reforms in the sector

Sandesh is currently locked at the 20% upper circuit filter at Rs 206.75,
which is also the new high for the counter, on volumes of 1.65 lakh shares.
There are pending buy orders on this counter, of about 12,000 shares by now.
The counter flared up around 5% to close at Rs 172.3 on 12 August 2005 after
the Government of India announcement. The stock was quoting at Rs 159.95 on
3 August 2005.
Today’s spurt is on the back of the Government of India announcement, that
came on Friday, 12 August 2005. It permitted foreign direct investment (FDI)
and portfolio investment within the composite limit of 26% of the paid-up
capital of an Indian company publishing newspapers, periodicals and dealing
with news and current affairs. Accordingly, RBI has issued a notification
withdrawing the prohibition placed on FIIs to purchase shares of print media
Sandesh is a Gujarat-based publishing house. The company's daily --
Sandesh -- is published from Ahmedabad, Surat, Baroda and Rajkot. It is also
publishing a weekly magazine for women called STREE and has also launched
monthly publication on Astrology viz JYOTISH-DEEP . The company is also
engaged in leasing activities.
For the first quarter ended 30 June 2005, Sandesh registered a 17.13% rise
in net profit to Rs 2.94 crore (Rs 2.51 crore) on a sharp fall of 91.68% in
net sales to Rs 44.25 crore (Rs 532.12 crore).
As on 30 June 2005, promoters' holding in Sandesh was 74.52%, while the
public held 13.6%.

Scandent Solutions Corporation takes off on order win

Scandent Solutions Corporation jumped 5.7% to Rs 249.90.
85,621 shares changed hands in the counter on BSE by the first two hours of
The stock witnessed a solid surge during late May 2005 to late July 2005. It
later came off the higher level on profit taking. From a high of Rs 258.20
on 22 July 2005, the stock slipped to Rs 236.40 by 12 August 2005.
Besides improving business process at Singapore Airline’s training schools,
the enterprise learning system will enhance effective of staff across the
airline. Financial terms of the deal were not unveiled.
Recently, Scandent Network Europe - a wholly-owned subsidiary of the
company, agreed to acquire shares of BWH, France, an enterprise resource
planning software vendor.
Scandent Solutions focuses on the three key verticals of banking, financial
services and insurance (BFSI) - manufacturing and logistics. However, being
principally onsite centric, the company's margins are low.

Gufic Bio Sciences gains on foray into anticancer products

Gufic Bio Sciences is currently up 2.7% to Rs 32.5 on volumes of 4.10 lakh
shares after hitting a high of Rs 33.2 in intra-day trades.
The low for the day was Rs 30.85.
The scrip has been volatile in the past month. From Rs 24.50 on 13 July
2005, the counter rallied to close at a high of Rs 39.8 on 2 August 2005.
Here, it witnessed proit taking to end at Rs 31.65 on 12 August 2005.
Gufic Biosciences today said that it is all set to make a foray into
anticancer products. Currently, the company is in an advanced stage of
development of a range of anticancer products, which are in lyophilized
form. These products are going to be a major import substitute for Indian
patients, thus making the medicine affordable. These products are also meant
to be exported to various countries.
Earlier in June 2005, the company launched three products to strengthen its
presence in the gastroenterology segment. Gastroenterologists now make up a
major speciality segment for the company.
The company has charted out a portfolio expansion programme. On the
biotechnology front, it has launched five products in the human injectibles
category and would be launching products in the enzymes and recombinant
categories in June 2005 and 2006, respectively. On the pharmaceutical side,
the company plans to launch herbal products in the gynecology, orthopedic
and pain-relief segments.
For the quarter ended 30 June 2005, the company reported a 53.7% jump in net
profit to Rs 1.26 crore (Rs 0.82 crore). Net sales increased 22.9% to Rs
15.38 crore (Rs 12.51 crore).

Oveseas acquisition helps Ispat Industries head higher

Ispat Industries is currently up 3.13% to Rs 23.10 on volumes of 18.35 lakh
shares after hitting an intra-day high of Rs 23.25 in early trades.
The low for the day so far was Rs 22.65.
The counter recovered from the close of Rs 17.4 on 30 June 2005, to Rs
22.40, as steel prices remained firm after the fall witnessed earlier.
As per reports, a unit of Ispat Industries has taken over Bulgaria's largest
steel producer, Kremi Kovtzi. The company has acquired 71% stake held by
Finmetals Holding. The deal was finalised after representatives of Ispat
were voted to the Bulgarian firm's supervisory board. The move signals
Ispat's Global Steel Holdings acquisition of the 71% stake previously held
by Bulgarian Finmetals Holding. In April, Ispat had signed a preliminary
deal worth USD 400 million in cash and future investment.
Ispat Industries promoted by the Mittals, manufactures all types of
galvanised plain/corrugated steel sheets/strips, coils and sponge iron. The
company has technical collaboration with Mitsui & Co, Japan; Midrex
Corporation, US; Ajax Magnathermic, UK; Hivahara & Co, Nippon Denro Mfg Co
and Hitachi of Japan.
As of 30 June 2005, the promoters hold 54.48% stake in the company. For the
quarter ended 31 March 2005, the company posted a 531.2% jump in net profit
to Rs 166.51 crore (Rs 26.38 crore). Net sales rose 53.7% to Rs 1,695.78
crore (Rs 1103.3 crore).

International Hometex gains before preferential issue

International Hometex (formerly Trimbak Industries) is currently up 5.05% to
Rs 28.05 on volumes of 68,685 shares.
The scrip touched a high of Rs 28.4 and low of Rs 26.75 on opening.
From Rs 6.01 on 30 March 2005, the counter rallied to a high of Rs 29.45 on
19 July 2005, after the company diversified into the textile products
manufacturing business.
Today's uptrend comes ahead sof the company's board meet, where the board
will consider preferential issue of equity share/warrants. For the quarter
ended 30 June 2005, the company posted a 200% jump in net profit to Rs 0.75
crore (Rs 0.25 crore). Net sales increased 27.52% to Rs 9.22 crore (Rs 7.23
In a backward integration move, International Hometex set up a spinning unit
to meet its requirements of quality yarn as well as to increase the terry
towel capacity. Last year, the company went on the expansion of its terry
towel capacity at a total project cost of Rs 14 crore. This project is
currently under implementation.

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