Thursday, September 29, 2005

Bonus issue approval from shareholders sets Mphasis BFL onward

Mphasis BFL rose 3.6% to Rs 252.20 after the company’s shareholders gave
their nod for a bonus issue.

54,452 shares changed hands in the counter on BSE.

The bonus issue is at a liberal 1:1.

The stock witnessed a sharp fall on 22 September 2005 when the Sensex tanked
265 points. The scrip lost 5.6% on 22 September to Rs 241.95. The stock
moved in a range of Rs 243 to Rs 246 in five trading sessions between 23
September 2005 and 29 September 2005.

Earlier, the stock had plunged in late August 2005, after private equity
firm Barings Private Equity said it had given up a plan to sell its 35.6%
stake in the company.

Mphasis has two key divisions - BPO and IT services. Mphasis carries out BPO
business under its subsidiary Msource. In IT services, the company derives a
majority of its revenue from the highly competitive finance vertical.

In February this year, MphasiS acquired Princeton Consulting for $ 14
million. This was followed by the acquisition of El Dorado for $ 16.5
million in March. In the second half of the year 2004, Mphasis acquired
Bangalore-based software solutions company Kshema Technologies, for
approximately $21 million through a combination of stock and cash.

For Q1 June 2005, Mphasis BFL’s consolidated net profit rose 8% on a
sequential basis to Rs 33.33 crore from Rs 30.96 crore in Q4 March 2005. Net
sales rose 7% to Rs 219.70 crore from Rs 205.08 crore in Q4 March 2005.

Sensex proves volatile after hitting all time high

The Sensex came off its all time high of 8722.17 points, hit in the
afternoon, on profit taking. At 14:08 hours, the BSE Sensex was quoting at
8678 points, registering a gain of 72 points compared to its previous close.

The low for the day was 8588.47 points.

The BSE Midcap index turned negative, with a fall of 0.13%, while the BSE
Small Cap index was down 0.97%.

The BSE PSU index was up 0.32%, while the BSE Bankex declined by 0.18%.

The Sensex has witnessed a swing of 135 odd points so far.

Total turnover so far amounted to Rs 2,712 crore.

The advance-decline ratio slipped further, close to 1:4, with 504 shares
moving higher and 2,022 shares moving lower. 30 shares remained unchanged so

Among Sensex stocks, 19 were in the green and 11 were in the red.

BHEL (up 5.6% to Rs 1225) was the biggest gainer in the Sensex.

Cipla added 3.4% to Rs 375.

Gujarat Ambuja Cements climbed 2.75% to Rs 75.85.

Satyam Computers added 1.75% to Rs 551.50.

HPCL (down 1.6% to Rs 318.55) was the biggest loser.

FCS Software topped turnover, at Rs 211.66 crore, followed by Reliance
Industries (Rs 116.79 crore) and Reliance Capital (Rs 106.78 crore).

PSU giant ONGC hit a new 52-week high of Rs 1,100, and, currently, is
trading 1% higher at Rs 1,081.

Reliance Industries hit a new 52-week high of Rs 810 earlier. It is up 0.82%
to Rs 806.85.

Bike major Hero Honda advanced 2.75% to Rs 746, on expectations of strong
bike sales in September 2005.

A block deal of 10,000 shares was executed on the Gujarat Gas counter, at Rs
1070 per share.

Escorts hit a high of Rs 114 after the company on Wednesday sold its equity
stake in Escorts Heart Institute and Research Centre to the Ranbaxy
controlled Fortis Healthcare for Rs 585 crore. Currently, it is down 4% to
Rs 103.35.

Britannia Industries jumped a staggering 11.9% to Rs 1,355 after hitting a
high of Rs 1453.30. The stock spurted on the back of block deals of about
2.75 lakh shares on BSE and NSE at a price of Rs 1,280 – a 5.6% premium to
Wednesday’s (28 September) closing price of Rs 1,211.10.

Cement scrips advanced further today on expectations of a hike in cement
prices post monsoon. Cement prices may rise by Rs 5 per bag as per a print
media report.

The rise was across the board - OCL India jumped 6% to Rs 160.05, and
Gujarat Ambuja Cements (GACL) gained 2.5% to an all time high of Rs 75.85.

ACC gained 0.25% to Rs 479, UltraTech Cement rose 0.4% to Rs 474, Birla
Corporation gained 2.9% to Rs 247, Dalmia Cement gained 0.63% to Rs 790,
Prism Cement rose 1% to Rs 24.90, Madras Cement gained 0.7% to Rs 1,440,
Mangalam Cement gained 0.7% to Rs 83, Kakatiya Cement rose 0.4% to Rs
102.50, India Cements gained 1.2% to Rs 109.30 and Shree Cement gained 1.2%
to Rs 467.

Among the noteable block deals of the day, Amtek Auto with 1.60 lakh shares
at Rs 279 per share, Federal Bank with 1.51 lakh at Rs 186.30 per share,
Gujarat Ambuja Cements with 4.02 lakh shares at Rs 76.65 per share, ING
Vysya Bank of 2.50 lakh shares at Rs 186.50 per share, LIC Housing of 1.50
lakh shares at Rs 202.75 per share, TVS Motors with 6.90 lakh shares at Rs
91.50 per share and Tata Teleservices (Maharashtra) of 5.66 lakh shares at
Rs 33.20 per share.


Block deal boosts Britannia Industries

Britannia Industries jumped a staggering 18.4% to Rs 1,435.

Nearly 2 lakh Britannia Industries shares were exchanged in the counter on

The stock spurted as block deals for about 2.75 lakh shares took place on
BSE and NSE at a price of Rs 1,280 – a 5.6% premium to Wednesday’s (28
September) closing price of Rs 1,211.10.

The last few months have seen a sustained uptrend in the stock. From a low
of Rs 845 on 23 May 2005, it marched up to Rs 1,211.10 by 28 September 2005.
Strong volume growth in biscuits and a price hike have supported the counter
in recent months.

A few months back, Britannia raised prices of its best-selling Tiger
biscuits by 17% for 100 gms in an effort to improve its margins.

The biscuits industry has bucked the slide in the FMCG market and has grown
at an average of 10-12% in the last two years mainly on the strength of
volumes. Over 80% of Britannia's revenues come from biscuits and high
protein foods.

Britannia is witnessing increasing competition with the entry of
heavyweights like Hindustan Lever and ITC in the biscuits segment.

In addition to its marketing strategies, Britannia Industries is also
buffeting its net margin by various other measures. It is setting up a unit
at Uttaranchal, which will begin production during 2006-07, and will benefit
from excise and other tax exemptions for 10 years.

Britannia’s net profit (net profit adjusted after extra-ordinary items) rose
7.2% in Q1 June 2005 to Rs 36.90 crore (Rs 34.41 crore). Net sales rose 2.7%
to Rs 405.40 crore from Rs 394.70 crore.

Hindustan Construction builds on a liberal 10-for-1 stock split proposal

Hindustan Construction Company jumped 9% to Rs 1,088 after the company’s
board approved a liberal 10-for-1 stock split.

The stock hit a high of Rs 1,124.90, which is a lifetime high.

It leaped up in the past few days ahead of the announcement. From a low of
Rs 790.75 on 22 September 2005, it soared 26% in just four trading sessions
to a lifetime closing high of Rs 997.75 on 28 September 2005. The company’s
announcement after trading on 23 September that it has received two orders
worth a huge Rs 1,079.86 crore from National Hydroelectric Power
Corporation, Faridabad sent the stock spiraling.

Just prior to the four-day rally , the stock had slumped 9.5% in two trading
sessions to Rs 790.75 on 22 September 2005 from Rs 874.35 on 20 September
2005 in a weak market.

Earlier, the stock exhibited strength during late June 2005 to late August
2005. From a low of Rs 524.95 on 29 June 2005, the stock had spurted to Rs
869.55 by 23 August 2005. It then turned volatile during the period late
August to mid-September 2005.

Hindustan Construction Company (HCC) has a strong order backlog of Rs 5,300
crore, 3.6 times the FY 2005 revenue! Currently, hydel and thermal power,
transportation, and pipelines account for the maximum share of the
order-book mix.

HCC focuses on high value sub-sectors in the construction segment like
power, roads, ports, and urban infrastructure. To diversify its risk from
one market, HCC is placing thrust on projects in the Middle East and Africa.
HCC recently bagged an order worth Rs 150 crore in Saudi Arabia for the
restoration of a pier, which marked its entry into the Gulf region. The
recent increase in construction activity in the Gulf has made the region
more attractive for new entrants.

Meanwhile, HCC is foraying into real estate development through its 50%
subsidiary, Lavasa Corporation (LCL). The latter is setting up a 10,000 acre
new township near Pune.

Bhel powers to lifetime high

PSU equipment major Bharat Heavy Electricals jumped 5.2% to Rs 1,221

The stock hit a high of Rs 1,244 which is a lifetime high . 93,095 shares
changed hands in the counter on BSE by afternoon trade.

The stock has been on a roll having risen sharply over the past few months.
From a recent low of Rs 847 on 28 June 2005, it jumped a staggering 37% to
an all time closing high of Rs 1,160.35.

Today’s solid surge in the stock materialised after A.K. Puri, chairman and
managing director of Bhel said at the company’s AGM that it expects to
achieve healthy top and bottomline growth in 2005-06. The company had booked
export orders worth Rs 1,175 crore so far this year.

Bhel has been sitting on a solid order book position. As at end of 2004-2005
(FY 2005), the company had an order book of Rs 32,000 crore – almost 3 times
its FY 2005 sales. Analysts say that the order flow for Bhel may remain
strong due to the government’s thrust on the power sector and revival of
industrial capex.

Bhel figures as the largest engineering and manufacturing enterprise in
India in the energy related/infrastructure sector. The company is engaged in
the manufacture of over 180 products under 30 major product groups and
caters to various segments including power generation & transmission,
industry, transportation, telecommunication, and renewable energy, among

Bhel’s operations are organized around two business sectors - power and
industry. Power is the area of thrust for the company, and consists of
thermal, nuclear, gas, diesel and hydro business.

Bhel turns out major capital equipment and systems like captive power

The Government of India holds 67.72% stake in Bhel.

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).

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