Wednesday, September 14, 2005

New order win may boost Praj Industries


Praj Industries may edge higher after the company announced on Wednesday
that it has bagged a contract worth Rs 36 crore for a 280,000-liters-per-day
bioethanol plant from Koyna Seker, Turkey, against stiff competition from
European players. Koyna Seker is part of the progressive and diversified
conglomerate engaged in banking, insurance, dairy, etc. This project is
being set up for production of bioethanol using sugarbeet molasses as
feedstock. The project is planned to be completed by November 2006, Praj
said. Turkey is expected to formally announce its fuel ethanol programme
from January 2007.

Indian Hotels may move higher on reports that the company will develop a new
business hotel in Coimbatore. The hotel will have 200 rooms and will be
unveiled by October 2007. The new hotel will have three food and beverage
outlets, 15,000 square feet of banqueting and meeting facilities and a
fitness centre.

JBF Industries may rise on reports that it has tied up with the Ras Al
Khaimah Investment Authority to set up a polyester resin packing (PET) and
polyester films manufacturing facility in Ras Al Khaimah, the UAE. The plant
will have a capacity of 900 tonnes per day – polymerisation with a
production of 600 tonnes a day of solid state polymerisation (SSP) chips and
300 tonnes of polyester film. The vertically integrated plant is targeted at
the markets of the US, the European Union and China.

Raymond may see action after the company said it has decided to consolidate
the apparel business where by the company will divest its entire
shareholding of 74.1% in the share capital of Colorplus Fashions to Raymond
Apparel - a wholly owned subsidiary of Raymond.

Cummins India may edge higher after the company said on Wednesday its board
had approved setting up an additional manufacturing facility in Pune to make
engines and generator sets at a cost of Rs 15 crore.

Maral Overseas may edge higher on reports that the company expects a sharp
surge in turnover in 2006-2007 when the expanded capacity for
textiles/apparels starts operating. The company is expanding its
textiles/apparel production capacity at a capital outlay of Rs 150 crore.
The company has already spent Rs 50 crore in knitting, processing, and
garmenting facilities. The investment of another Rs 100 crore is now being
made to enhance spinning capacity from the present 54,000 to 70,000 spindles
and to set up a thermal power plant.

3i Infotech may see action on media reports that the company may mull
acquisition in the new software product categories such as mutual funds,
securities trading and bills discounting for a quick start into these
software product segments.

Vaibhav Gems may edge higher after RBI allowed fresh FII buying in the stock
with an enhanced ceiling of 60% of its equity capital.

VIP Industries, Blow Plast and Universal Luggage – part of the Piramal
group - may lose ground after Universal Luggage denied reports that a merger
of the three is on cards.

Sun Pharmaceutical Industries may edge higher on reports that it has
acquired a manufacturing facility of the Ohio-based Valeant Pharmaceuticals
International in Bryan for an undisclosed sum. The acquisition is part of
Sun Pharma’s plant to accelerate the drug filings in the US market. Last
month, Sun Pharma had bought Valeant’s manufacturing operations in Hungary
which marked Sun’s foray into the European markets in terms of establishing
physical base there.

Orchid Chemicals turns ex-bonus today (the company had declared 1:2 bonus).

Dagger-Forst Tools cuts out gains on IPO/rights issue proposal


Dagger-Forst Tools was locked at the 10% upper circuit filter at Rs 108.20,
and volumes on the counter amounted to 10,839 shares. The stock moved up
sharply from the close of Rs 75.70 on 25 August 2005 to Rs 106.75 on 6
September 2005 following the materialising of the proposal. Dagger-Forst
Tools has announced plans to raise Rs 29 crore via a rights/ public issue.
The public issue is to be priced in a band of Rs 65-78 per share. The
company will also come out with 33.2 lakh shares on a 5:7 rights basis at Rs
33 per share. The lastest paid-up equity share capital of the company is Rs
4.65 crore. Dagger-Forst Tools is a Yash Birla group engineering company
engaged in the manufacture of an entire range of tailor-made cutting tools.
Its products are supplied to the automobile industry and the defence sector.
The company also manufactures broach sharpening machines, developed with
technical know-how from Central Machine Tools Industries (CMTI) of
Bangalore. For the quarter ended 31 March 2005, Dagger-Forst turned out a
26% fall in net profit to Rs 0.26 crore (Rs 0.35 crore). Net sales climbed
10.80% to Rs 6.67 crore (Rs 6.02 crore).

SBI unfazed by FII investment ceiling; climbs to all-time high


State Bank of India gained 2.7% to a lifetime high of Rs 905.75 and the
stock rose on decent early volume of 8.5 lakh shares. State Bank of India
(SBI) has a weightage of 4% in the Sensex, and thus, it has helped the
Sensex's upward momentum. The barometer index was up 47 points at 8,241. SBI
has spurted since late August 2005. From a recent low of Rs 772.75 on 29
August 2005, the scrip rose 14% in a short while to an all time closing high
of Rs 881.65 on 13 September 2005. SBI counter has been doing impressively
over the past one year, having more than doubled to its present levels from
Rs 420-Rs 440 in August 2004. The solid rally in the stock has materialised
despite the FII investment ceiling of 20% having been reached and therefore
no fresh FII buying is permitted in the counter. SBI is quite a favourite
with foreign institutional investors. And this is largely because the
largest commercial bank in the country has been registering steady growth in
earnings over the years. SBI plans to focus on agricultural and Small and
Medium Enterprises (SME) business lending. Besides this, it also is setting
about expanding its presence in the international markets. SBI recently
acquired 51% stake in Indian Ocean International Bank Limited (IOIB),
Mauritius. Accordingly, IOIB has become a subsidiary of the bank from 19
April 2005. The bank is also eyeing, for acquisition, a few more overseas
banks in the coming months. SBI aims at reducing its NPAs below 2% by the
end of the current financial year FY 2005-06. SBI, last week, said it had
increased the size of its medium-term notes (MTN) programme to $ 2 billion
from $ 1 billion. The programme, which is listed on the Singapore Stock
Exchange, was set up last year to raise funds to augment the bank's overseas
operations.

Maiden bonus issue decision gives Shah Alloys metallic edge


Shah Alloys leaped up 5% - the maximum permissible limit of the day - to Rs
372.65, and notched up volumes of 25,246 shares.
This is also the new 52-week high for the counter. At the ceiling, pending
buy orders stood at 57,502 shares. The stock had doubled in about a month,
from Rs 151.45 on 3 August 2005 to Rs 354.95 yesterday (ahead of the company
’s board meet). Meanwhile, Shah Alloys’ board of directors, at its meeting
held on 13 September 2005, approved and recommended a liberal bonus issue
for equity shareholders in the ratio of 1:1. This is the company's maiden
bonus issue. The latest paid-up equity share capital of the company is Rs
8.91 crore.
Among other decisions taken by the board was the increase in authorised
share capital from Rs 15 crore to Rs 30 crore. The board, however, deferred
the agenda for preferential allotment of shares to selected investors, an
issue of Foreign Currency Convertible Bonds (FCCB), ADR/GDR, and an issue of
warrants to promoters. Shah Alloys is engaged in the manufacture of mild
steel, stainless steel, C T D bars, S S flats and pattas, and cold-rolled
sheets. For the quarter ended 30 June 2005, the company notched up a net
profit of Rs 10.12 crore compared to Rs 7.12 crore in the same quarter a
year ago. Net sales amounted to Rs 258.10 crore (Rs 224.04 crore).

Stock split proposal strengthens Dalmia Cement


Dalmia Cement Bharat jumped 7.6% to Rs 728 after the company said its board
will meet on 20 September 2005 to consider stock split and increase in
authorised share capital of the company.
1,551 shares were traded in the counter on BSE in the first hour of trade.
The stock moved strong in the past two months ahead of the announcement.
From a low of Rs 382 on 6 July 2005, the stock spiraled up 77% to a lifetime
closing high of Rs 676.45 on the eve of the announcement, which was made
after trading hours on Tuesday (13 September 2005). Firm cement prices in
the past two months helped the counter on its upward journey.
The last two years have seen a number of companies splitting their shares
and/ or announcing bonus issues.
Dalmia Cement has a 1.2-million-tonne cement plant at Dalmiapuram, Trichy
district, Tamil Nadu. Dalmia Cement is known for the manufacture of special
cements. These basically find applications in strengthening airstrips,
concretising railway sleepers and cementing oil wells.
The company had earlier announced plans to raise the capacity to 2.8 million
tonnes.
For Q1 June 2005, Dalmia Cement reported a 20.4% growth in net profit to Rs
10.72 crore (Rs 8.90 crore). Net sales rose 21.4% to Rs 133.71 crore.

Hindalco shines on rights issue proposal


Copper and aluminium major Hindalco Industries jumped 4.3% to Rs 152 after
the company said its board will meet on 20 September 2005 to consider
raising finance through various options including a rights issue. The stock
surged on high early volume of 3.88 lakh shares on BSE. Expectations of
strong Q1 June 2005 results and firm copper and aluminium prices triggered a
solid surge in the scrip since early June 2005. From a low of Rs 107.91 on 2
June 2005, the stock spurted to Rs 145.85 by 13 September 2005. With effect
from 30 August 2005, a liberal 10-for-1 stock split was effected in the
stock. Hindalco needs funds for its major expansion projects. The company
has chalked out aggressive plans in both copper and aluminium. The plans
include capacity expansions and new ventures, and entail a capital
investment in excess of Rs 20,000 crore over three years.
The company has entered into MOUs with the respective governments for
setting up of greenfield alumina and aluminium facilities in Orissa and
Jharkhand.
Hindalco's alumina capacity at Muri is being raised from 110,000 to 500,000
TPA. The company has also begun evaluation work for expanding the Belgaum
refinery from 350,000 to 650,000 TPA and that of high value special alumina
capacity at Belgaum to 167,000 TPA from 91,000 TPA. Concurrent to the
alumina expansion, Hindalco is also augmenting its smelter and captive power
generation capacity at Hirakud.
Hindalco’s current debt-equity ratio 0.44:1. The long-term debt-equity ratio
is 0.42:1.
Hindalco’s net profit rose 38% to Rs 324.90 crore in Q1 June 2005 (Rs 235.60
crore). Net sales rose 7% to Rs 2,207.80 crore (Rs 2,061.60 crore).

Stocks which performed well today


Copper and aluminium major Hindalco Industries jumped 4.3% to Rs 152 after
the company said its board will meet on 20 September 2005 to consider
raising finance through various options including a rights issue.

Dalmia Cement Bharat jumped 7.6% to Rs 728 after the company said its board
will meet on 20 September 2005 to consider stock split and increase in
authorised share capital of the company

Shah Alloys leaped up 5% - the maximum permissible limit of the day - to Rs
372.65, and notched up volumes of 25,246 shares.

State Bank of India gained 2.7% to a lifetime high of Rs 905.75 and the
stock rose on decent early volume of 8.5 lakh shares.

Dagger-Forst Tools was locked at the 10% upper circuit filter at Rs 108.20,
and volumes on the counter amounted to 10,839 shares.

Hindustan Dorr-Oliver jumped 5% to Rs 379.85 on volumes of 36,500 shares.

Infotech Enterprises leaped up 8.20% to Rs 360, and notched up volumes of
3.59 lakh shares.

Opto Circuits is currently down 2.88% to Rs 222.50 on volumes of 31,765
shares

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