Aide says SAIL to cut product prices Rs 700-800/tn today

A report by NW 18 indicates that SAIL will cut product prices by Rs 700-800/tn today. SAIL has cut the prices of flat products by Rs 500-1,000/tn. A recent report by Emkay Stock Brokers stated that they expected steel prices to weaken during 2Q F08 due to (a) Rupee appreciation vis-à-vis US dollar, (b) global softening of steel prices, (c) start of monsoon season resulting in lower construction activity, and (d) increased imports from China.

SAIL has already announced a reduction of upto Rs300/t on various products citing lower appetite of market to absorb current prices. However, we believe the softening is a temporary phenomenon and the prices will rebound once the monsoon is over and demand for steel picks up. We remain positive on the steel cycle given both demand pull and cost push which will likely result in stable price during FY08, the report mentions.

However, they believe that the demand will pick up once the monsoon season ends and construction activity starts again. Given India’s GDP growth target of 9% for FY08 and FY09, we believe the Indian steel industry is likely to witness strong growth. There might be a short-term correction in the steel stocks owing to the factors mentioned above. However, any such weakness in the stock prices should be seen as an opportunity to buy. We remain positive on the steel cycle and favor Tata Steel, SAIL and JSW Steel as our top picks in the sector, the report adds.





IFB Industries washes and rinses clean on sparkling Q4 March 2007 net profit

The results were announced during market hours today, 2 July 2007.

The scrip had hit a high of Rs 27.65 and a low of Rs 26 during the day and closed at Rs 27.65. It had touched a 52-week high of Rs 29.95 on 3 November 2006 and a 52-week low of Rs 14.50 on 4 April 2007.

The IFB Industries scrip had risen 32.47% over the last one month to 29 June 2007 compared to the Sensex’s return of 0.73%. The company outperformed the market over the last one quarter gaining 34.40% compared to the Sensex’s appreciation of 12.07%.

The share price had risen from Rs 17.20 on 21 June 2007 to Rs 23.05 on 29 June 2007.

The scrip had an average daily volume of 6,977 shares in the past one quarter.

The company has current equity of Rs 18.04 crore, with each share of a face value of Rs 10.

The current market price of Rs 27.65 discounts its FY 2007 EPS of Rs 19.55 by a PE multiple of 1.41.

IFB Industries' net profit rose 1,143.27% to Rs 21.26 crore in Q4 March 2007 as against Rs 1.71 crore in Q4 March 2006. Sales surged 67.14% to Rs 88.85 crore in Q4 March 2007 as against Rs 53.16 crore in Q4 March 2006.

The company reported a net profit of Rs 35.26 crore in the year ended March 2007 (FY 2007) as against net loss of Rs 13.80 crore in the previous year ended March 2006 (FY 2006). Sales moved up 26.85% to Rs 324.75 crore in FY 2007 as against Rs 256.02 crore in FY 2006.

IFB Industries manufactures consumer durable products like dryers, washing machines, microwave ovens, dishwashers .




Allying with German company is Gujarat Alkalies & Chemicals' winning strategy

The company made the announcement during market hours today, 2 July 2007.

The scrip had touched high of Rs 156.45 and a low of Rs 142.40 during the day and closed at Rs. 152.60.

The stock had an average daily volume of 1.96 lakh shares on BSE in the past one quarter.

Gujarat Alkalies & Chemicals has 7.34 crore outstanding shares of a face value of Rs 10 each.

At current price of Rs 151.60, the scrip trades at a PE multiple of 5.96, based on year ended March 2007 EPS of Rs 25.4.

The Gujarat Alkalies & Chemicals scrip had fallen 2.93% in the one month to 29 June 2007 versus the Sensex's 0.73% rise. It added 23.81% in the past three months against the Sensex's 12.07% return.

The stock had a hit 52-week high of Rs 195 on 15 September 2006 and a 52-week low of Rs 107.10 on 8 March 2007.

Gujarat Alkalies & Chemicals’ net profit rose 44% to Rs 38.89 crore in Q4 March 2007 as against Rs 27.01 crore in Q4 March 2006. Sales moved up 12.6% to Rs 262.13 crore in Q4 March 2007 (Rs 232.72 crore).

Net profit dropped 5.8% to Rs 186.56 crore in the year ended March 2007 as against Rs 197.97 crore in FY 2006. Sales jumped 10.7% to Rs 1,044.84 crore in FY 2007 (Rs 944.10 crore).

The state-run Gujarat Alkalies & Chemicals is the largest producer of caustic soda in the country with a total capacity of 3.58 lakh tonnes per annum. The company exports its products to USA, Europe, Australia, Africa, Far & Middle East countries, China and South Asian Markets.






L&T's dual role gets critical acclaim

The scrip had hit a high of Rs 2,275 which is its all-time high and closed at Rs 2234.90. Its low so far during the day was Rs 2,190. It had touched a 52 week low of Rs 978.50 on 24 July 2006.

The L&T scrip had risen 9.88% over the last one month to 29 June 2007 compared to the Sensex’s return of 0.73%. The company outperformed the market over the last one quarter, gaining 35.63% compared to the Sensex’s gain of 12.07%.

The share price had risen from Rs 1,870.85 on 13 June 2007 to Rs 2,166.05 on 25 June 2007. It declined later to Rs 2146.20 on 27 June 2007, before recovering to Rs 2,196.05 on 29 June 2007.

The scrip had an average daily volume of 2.02 lakh shares in the past one quarter.

The company has a current equity of Rs 56.66 crore, with each share of a face value of Rs 2.

The current market price of Rs 2,251.90 discounts its FY 2007 EPS of Rs 70.80 (based on consolidated results) by a PE multiple of 31.80.

Faced with an acute shortage in engineering and equipment capacity for the power sector, the government is keen to develop an alternative to Bhel as the key equipment supplier for upcoming power projects. India is slated to add more than 78,000 mega watt (MW)over five years to meet Power For All goal by 2012.

It is estimated that Bhel would have the capacity to meet only 60% of the requirement from its present facilities. Promoting L&T as a clone of Bhel would ensure both competition and additional capacities. L&T has already tied up a joint venture for 800 MW boilers with Mitsubishi and is in advanced stage of discussion regarding turbine and other equipment with Toshiba, Japan.

This move by the government, however, would put spade to NTPC's plans of diversifying into equipment manufacturing. National Manufacturing Competitiveness Council (NMCC) chairman V Krishnamurthy has written to the prime minister's office (PMO) that L&T should be considered as Bhel's clone and NTPC should focus on its core business of power generation.

If the proposal is accepted, L&T could be offered power projects on an negotiated basis as was done earlier in case of Bhel. This would ensure that L&T's investments in manufacturing gets assured customers.

The proposal has been mooted to develop a competitive power equipment market in the country with large players in both public and the private sector. It would also help to eliminate severe shortages of equipment in the market as sole supplier Bhel's order book is full for next five years hampering progress several generation projects.

On 21 June 2007, L&T had won a key contract valued at over $94.95 million for construction of two ships from BigLift Shipping of the Netherlands, a part of the Spliethoff Group. Production of the ships is scheduled to commence in June 2008 and the vessels shall be delivered by March 2010. The vessels will be able to carry all kinds if dry cargo as well as project cargoes and heavy lift in the most efficient manner.

L&T had said on 19 June 2007 that its joint venture with Eastern Contracting LLC had bagged a Rs 610-crore order from Victory Heights Golf Residential and Development LLC, United Arab Emirates, to build a residential property in Dubai Sports City. The project is to be completed in 660 days from the date of commencement.

The company's net profit jumped 50.11% to Rs 700.77 crore in Q4 March 2007 as against Rs 466.85 crore in Q4 March 2006. Sales climbed up 35.01% to Rs 6,248.24 crore in Q4 March 2007 (Rs 4,627.87 crore).

Net profit scaled up 38.62% to Rs 1,403.02 crore in the year ended March 2007 as against Rs 1,012.14 crore in FY 2006. Sales rose 19.31% to Rs 17,578.84 crore in FY 2007 (Rs 14,733.85 crore).

On 25 June 2007, L&T said its board will meet on 3 July 2007 to consider declaration of special dividend for the year ending March 2008

L&T is one of the largest engineering conglomerates. It manufactures a wide range of engineering products like earthmoving, industrial and chemical machinery, switchgears, valves and welding alloys.






L&T may get Bhel-II status; Govt keen to develop alternative to BHEL as key equipment supplier for upcoming power projects

L&T may get Bhel-II status; Govt keen to develop alternative to BHEL as key equipment supplier for upcoming power projects

Private sector engineering major Larsen & Toubro (L&T) may well be promoted as Bhel-II if the current thinking in the government is anything to go by, reports the ET. Faced with an acute shortage in engineering and equipment capacity for the power sector, the government is keen to develop an alternative to Bhel as the key equipment supplier for upcoming power projects. India is slated to add more than 78,000 mw over five years to meet Power For All goal by 2012.

It is estimated that Bhel would have the capacity to meet only 60% of the requirement from its present facilities. Promoting L&T as a clone of Bhel would ensure both competition and additional capacities. L&T has already tied up a joint venture for 800 mw boilers with Mitsubishi and is in advanced stage of discussion regarding turbine and other equipment with Toshiba, Japan.

This move by the government, however, would put spade to NTPC’s plans of diversifying into equipment manufacturing. National Manufacturing Competitiveness Council (NMCC) chairman V Krishnamurthy has written to the prime minister’s office (PMO) that L&T should be considered as Bhel’s clone and NTPC should focus on its core business.

“The government should consider encouraging L&T as an alternative source of manufacturing of power equipment instead of NTPC venturing into it. I envisage a somewhat different but more exciting role for NTPC,” Krishnamurthy said in his letter.

NMCC recommendations are important as prime minister Manmohan Singh had asked it to give views on the proposal of ministry of power for setting up a manufacturing facility by NTPC for power equipment.

If the proposal is accepted, L&T could be offered power projects on an negotiated basis as was done earlier in case of BHEL. This would ensure that L&T investments in manufacturing gets assured customers.

The proposal has been mooted to develop a competitive power equipment market in the country with large players in both public and the private sector. It would also help to eliminate severe shortages of equipment in the market as sole supplier Bhel’s order book is full for next five years hampering progress several generation projects.

NMCC has said that NTPC equipment model is not practised elsewhere in the globe and therefore the power producer should focus on generation and could consider forging alliances with either Bhel or L&T to undertake balance functions of a power plant. These may include coal handling, ash handling and piping work and developing institutions for project engineering and project management.

For main equipment such as boilers, turbine and generators, the responsibility should lie with Bhel and L&T, NMCC chairman has said.Mr Krishnamurthy has also asked PMO’s permission to examine the status of L&T projects independently in consultation with ministries of power and heavy industries so that necessary support could be extended for its fast-track competition.






Hindalco Industries unmoved by plans to secure future

The scrip had hit a high of Rs 163.95 and a low of Rs 158 during the day and closed at Rs 158.45. It had touched a 52-week high of Rs 192.75 on 1 November 2007 and a 52-week low of Rs 125.25 on 7 March 2007.

The scrip had risen 13.70% over the last one month to 29 June 2007 compared to Sensex’s return of 0.73%. The company outperformed the market over the last one quarter, gaining 22.91% compared to the Sensex’s gain of 12.07%.

The scrip had an average daily volume of 13.36 lakh shares in the past one quarter.

The company has current equity of Rs 122.71 crore, with each share of a face value of rupee one.

The Hindalco Industries share price had jumped from Rs 140.85 on 31 May 2007 to Rs 171.10 on 26 June 2007. It declined later and settled at Rs 160.15 on 29 June 2007.

The current market price of Rs 161.15 discounts its FY 2007 EPS of Rs 25 by a PE multiple of 6.44.

Hindalco Industries announced during market hours today, 2 July 2007, that the company has entered into a joint venture (JV)agreement with Mahanadi Coal (MCL), a subsidiary of Coal India, and with Neyveli Lignite Corporation (NLC), for Talabira II and III coal blocks in Orissa. The joint venture company (JV) is expected to be formed in the next 3-6 months and the company will have 15% shareholding, with MCL holding 70% and NLC holding 15%.

The JV is expected to commence coal mining of 20 million tonnes per annum (mtpa) by late 2009-early 2010. At full capacity, Hindalco will evacuate 3 mtpa for end use in the captive power plant to operate the smelter in its project Aditya Aluminium in Orissa. The JV is subject to the final approval of the government of India and the respective boards.

On 15 May 2007, Hindalco Industries through its wholly-owned subsidiary AV Metals Inc. acquired 7.54 crore (100%) common shares of Novelis.

Promoters now hold a 31.05% stake in Hindalco after the company made preferential allotment of 6.75 crore shares to promoters in April 2007 at Rs 172.87 a piece. Before the preferential allotment their holding was just a little over 27%. Their stake will go up further if and to the extent promoters exercise option of conversion of warrants into equity.

Hindalco Industries' net profit rose 15.17% to Rs 721.30 crore in Q4 March 2007 as against Rs 626.30 crore in Q4 March 2006. Sales were up 29.84% to Rs 4,748.90 crore in Q4 March 2007 as against Rs 3,657.40 crore in Q4 March 2006.

Net profit rose 54.90% to Rs 2,564.30 crore in the year ended March 2007(FY 2007) as against Rs 1,655.50 crore in the previous year ended March 2006(FY 2006). Sales jumped 60.69% to Rs 18,313.00 crore in FY 2007 as against Rs 11,396.50 crore in FY 2006.

Hindalco Industries, a flagship company of the Aditya Birla Group, is a leading producer of aluminium and copper.





Investors lend support to IFCI's search for strategic investor to lend a helping hand

The company made the announcement after market hours on Friday, 29 June 2007.

IFCI said it would also take on record its audited financial results for the quarter ended June 2007 on the same day.

The scrip had touched a high of Rs 60.50 today which its 52-week high and closed at Rs 59.60. Its low was Rs 56.55 during the day. The stock had hit a 52-week low of Rs 7.73 on 24 July 2006.

The stock had an average daily volume of 1.33 crore shares on BSE in the past one quarter.

IFCI has 63.99 crore outstanding shares of a face value of Rs 10 each.

At the current price of Rs 59.50, the scrip trades at a PE multiple of 4.21, based on its year ended March 2007 EPS of Rs 14.1.

The IFCI scrip had gained 18.81% in the one month to 29 June 2007 versus the Sensex's 0.73% rise. It added 66.37% in the past three months against the Sensex's 12.07% return.

IFCI would come out with a public announcement inviting interested parties for the proposed 26% stake. As per the plan, strategic investors will have to make bids within a month of the announcement being made public. Thereafter, IFCI will shortlist some investors.

The state-run lender is seeking a strong partner, be it an Indian entity or from overseas, which can add value to the company.

The 26% stake sale is part of IFCI's aim of being a world-class term-lending institution and not converting itself into a bank.

Currently, Life Insurance Corporation is the single-largest shareholder with 8.4%, followed by IDBI Bank at 5%. A large chunk of 26% stake is held by the public, another 21.8% is with foreign institutional investors, and 13.6% is held by private corporate entities.

The state-run lender reported a net profit of Rs 668.43 crore in Q4 March 2007 as against a net loss of Rs 1.11 crore in Q4 March 2006. Income from operations rose 41% to Rs 1052.62 crore.

Net profit was Rs 898.02 crore in the year ended March 2007 compared to a net loss of Rs 74.10 crore in the year ended March 2006. Income from operations rose 21% to Rs 1989.73 crore

IFCI's principal activities are project financing, providing financial services and comprehensive corporate advisory services. The company also provides equipment finance, equipment credit, equipment leasing, corporate loans, short-term loans and working capital loans to meet the specific needs of corporates.





On touching base in US, Welspun Gujarat Stahl Rohren takes off

The scrip had hit a high of Rs 239.35 today, 2 July 2007, which is a record high for the scrip. It had hit a low of Rs 222.95 during the day and closed at Rs 238.05. It had touched a 52-week low of Rs 46.60 on 25 July 2006.

The Welspun Gujarat Stahl Rohren scrip had jumped 24.11% over the last one month to 29 June 2007 compared to the Sensex’s return of 0.73% over the same period. The company outperformed the market over the past quarter, gaining 113.67% compared to the Sensex’s rise of 12.07%.

The share price had risen from Rs 175.65 on 13 June 2007 to Rs 221.90 on 29 June 2007.

The scrip had an average daily volume of 13.49 lakh shares in the past one quarter.

The company's current equity is Rs 70.33 crore, with each share of a face value of Rs 5.

The current market price of Rs 231.30 discounts its FY 2007 EPS of Rs 10.20 by a PE multiple of 22.67.

Welspun-Gujarat Stahl Rohren announced during market hours today, 2 July 2007, that it plans to build a manufacturing facility in Little Rock, Arkansas, US, on a 140-acre site adjacent to the Little Rock Port authority.

The $100-million facility, once completed, will be capable of producing 3,00,000 tonnes of tubular steel pipes annually for use in the oil and gas industry. The company will hire about 300 workers and hopes to bring production by spring 2008.

With majority of its production exported to the US, the company has a very strong presence in the US. The company currently has manufacturing facilities in Dahej and Anjar in Gujarat, India.

On 11 June 2007, the company had bagged Rs 1,166-crore export orders for the supply of line pipes overseas. The new orders have taken the company's pending order book position to approximately Rs 5,166 crore.

On 14 April 2007, Welspun Gujarat Stahl Rohren had decided to raise Rs 215 crore by issuing convertible or non-convertible securities, warrants to promoter group.

The company's net profit soared 113.92% to Rs 41.50 crore in Q4 March 2007 as against Rs 19.40 crore in Q4 March 2006. Sales were up 13.06% to Rs 728.10 crore in Q4 March 2007 as against Rs 644.00 crore in Q4 March 2006.

Net profit soared 132.63% to Rs 142.60 crore in the year ended March 2007(FY 2007) as against Rs 61.30 crore in FY 2006. Sales jumped 46.38% to Rs 2,678.50 crore in FY 2007 as against Rs 1,829.80 crore in FY 2006. <> Welspun Gujarat Stahl Rohren’s business include production and coating of high grade submerged arc welded pipes and electric resistance welded pipes.





Bajaj Auto fends off weak sales in June 2007

The announcement was made by the company on Sunday, 1 July 2007.

The scrip had touched a high of Rs 2,147 and a low of Rs 2,081 during the day and closed at Rs 2129.20.

The stock had an average daily volume of 1.16 lakh shares on BSE in the past one quarter.

Bajaj Auto has 10.11 crore outstanding shares of face value of Rs 10 each.

At the current price of Rs 2,128, the stock trades at a PE multiple of 16.98, based on year ended March 2007 (consolidated) EPS of Rs 125.3.

The Bjaja Auto scrip had fallen 4.29% in the one month to 29 June 2007 versus the Sensex's 0.73% rise. It declined 12.23% in the past three months against Sensex's 12.07% appeciation.

The stock had hit a 52-week high of Rs 3,175 on 13 October 2006 and a 52-week low of Rs 2,063 on 19 June 2007.

Bajaj Auto said vehicle sales in June 2007 fell 12% to 1,87,624 units, from 213,918 units in June 2006. Its motorcycles sales dipped 12% to 1,62,253 units, from 1,83,549 units, and sales of all two-wheelers dropped 12% to 1,64,758 units, from 1,88,231 units.

Sales of three-wheelers slid 11% to 22,866 units from 25,687 in June 2007. The company’s exports rose 42% to 48,675 units from 34,369.

Bajaj also said it will launch a new motorbike in September 2007, with an initial sales target of 50,000 units a month by January 2008.

Bajaj Auto’s net profit declined 11.1% to Rs 308.31 crore in Q4 March 2007, from Rs 346.97 crore in Q4 march 2006. Sales moved up 6.8% to Rs 2,313.55 crore in Q4 March 2007 (Rs 2,165.86 crore).

Net profit scaled up 10.1% to Rs 1,237.10 crore in the year ended March 2007 as against Rs 1,123.27 crore in FY 2006. Sales jumped 24.2% to Rs 9,520.41 crore in FY 2007 (Rs 7,667.90 crore).

Bajaj Auto manufactures two- and three-wheeler vehicles. Its other activities include insurance and investment business.

On 17 May 2007, the board of Bajaj Auto approved a demerger scheme, splitting group into three separate entities with the creation of two new companies. As per the demerger scheme, the company's various businesses including auto manufacturing and other strategic businesses such as wind energy, insurance and financial services, would be demerged into two newly incorporated subsidiaries: Bajaj Holdings and Investment (BHIL) and Bajaj Finserv (BFL).

The manufacturing business would vest in BHIL and other strategic businesses would vest in BFL. After the demerger, for each share of Bajaj Auto, the shareholders would continue to hold one share of the company with face value of Rs 10 and would also be allotted one BHIL share of Rs 10 face value and one BFL share of Rs 5 face value.

As part of the restructuring, BHIL would be renamed Bajaj Auto and the existing Bajaj Auto would be renamed as Bajaj Holdings and Investment.





With June sales submerging Maruti Udyog, share price leaps up

The scrip had hit a high of Rs 788.40 and a low of Rs 742.55 during the day and closed at Rs 771.35. It had touched a 52-week high of Rs 991.40 on 3 October 2006 and a 52-week low of Rs 691 on 24 July 2006.

The Maruti Udyog stock had declined 9.12% over the last one month to 29 June 2007 compared to the Sensex’s return of 0.73% over the same period. The company underperformed the market over the last one quarter, declining 9.34% compared to the Sensex’s gain of 12.07%.

The share price had declined from Rs 825 on 28 May 2007 to Rs 719.40 on 12 June 2007. It had gained since then to Rs 768.60 on 20 June 2007 before dipping again. It had settled at Rs 743.10 on 29 June 2007.

The scrip had an average daily volume of 1.92 lakh shares in the past one quarter.

The company has a current equity of Rs 144.46 crore, with a face value of Rs 5.

The current market price of Rs 783.10 discounts its FY 2007 EPS of Rs 54.06, by a PE multiple of 14.48.

Maruti Udyog said during market hours today, 2 July 2007, that it sold 59,917 vehicles in June 2007, up 24% from 48,425 vehicles sold in June 2006.

Maruti Udyog is 54.2 % owned by Japan's Suzuki Motor Corporation and sold 56,000 units in the domestic market in June 2007, up 25.5% from 44,626 units in June 2006. It exported 3,917 units in June 2007, up 3% from 3,799 units in June 2006.

On 4 May 2007, the government divested its entire holding in Maruti Udyog (MUL) by selling the residual 10.27% stake for Rs 2360 crore to a clutch of banks and insurance companies, at an average price of Rs 797 a share. In all, 32 financial institutions and mutual funds were allotted shares in Maruti.

Maruti’s net profit rose 24.3% to Rs 448.56 crore in Q4 March 2007 as against Rs 360.92 crore in Q4 March 2006. Sales advanced 35.2% to Rs 4429.76 crore in Q4 March 2007 (Rs 3277.01 crore).

Net profit jumped 31.4% to Rs 1,561.98 in the year ending March 2007 (FY 2007) as against Rs 1,189.05 crore in FY 2006. Sales scaled up 21.6% to Rs 14,653.89 crore in FY 2007 (Rs 12052.24 crore).





Investors see red despite Kernex Microsystems signalling bonus

The scrip hd hit a high of Rs 261 and a low of Rs 244.90 during the day and closed at Rs 244.90. It touched a 52-week high of Rs 264 on 29 June 2007 and a 52-week low of Rs 123 on 3 April 2007.

The Kernex Microsystems scrip had gained 78.19% over the last one month compared to the Sensex’s return of 0.73%. The company outperformed the market over the last one quarter rising 104.48% compared to the Sensex’s gain of 12.07%.

The share price had declined from Rs 193.65 on 8 June 2007 to Rs 166.25 on 14 June 2007. It gained since then to Rs 257.75 on 29 June 2007.

The scrip had an average daily volume of 45,900 shares in the past one quarter.

The company has a current equity of Rs 11.36 crore, with a face value of Rs 10.

The current market price of Rs 244.90 discounts the FY 2007 EPS of Rs 5.62 by a PE multiple of 43.57.

After trading hours on Friday 29 June 2007, Kernex Microsystems India's board approved issue of 1:10 bonus shares.

Kernex Microsystems' net profit rose 58.2% to Rs 0.87 crore in Q4 March 2007 as against Rs 0.55 crore in Q4 March 2006. Sales declined 50.4% to Rs 5.42 crore in Q4 March 2007 compared to Rs 10.93 crore in Q4 March 2006.

Kernex Microsystems manufactures, instals and maintains anti-collision systems as well as conceptualizing, designing, and developing certain railway safety and signal systems for Konkan Railways Corporation .





GMR Infrastructure splits shares, hits all-time high

The company made the announcement on Saturday, 30 June 2007.

The scrip had touched a high of Rs 768.95 today, which is its all-time high. It had touched a low of Rs 729.80 during the day and closed at Rs 764.90. The stock had hit a 52-week low of Rs 205 on 24 August 2006.

The stock had an average daily volume of 4.41 lakh shares on BSE in the past one quarter.

At the current price of Rs 758.55, the scrip trades at a PE multiple of 8428.3 based on its year ended March 2007 EPS of Rs 0.09.

The GMR Infrastructure scrip had gained 50.36% in the one month to 29 June 2007 versus the Sensex's 0.73% rise. It added 107.63% in the past three months against the Sensex's 12.07% return.

GMR Infrastructure acquired 99.99% equity share capital of GVL Investments (GVL) in the year ended March 2007.

The company reported net profit of Rs 12.37 crore on sales of Rs 22.01 crore in Q4 March 2007.

Net profit declined 91.89% to Rs 2.88 crore in the year ended March 2007 as against Rs 35.55 crore in FY 2006. Sales slipped 41.9% to Rs 33.39 crore in FY 2007 (Rs 57.44 crore).

GMR Infrastructure's principal activity is to generate, transmit and distribute electrical power. It is also into development, maintenance and operation of airports and roads.




Spentex's Czech-company-takeover yarn is good and true

The scrip had hit a high of Rs 41.65 and a low of Rs 38.10 during the day and closed at Rs 40.30. It had touched a 52-week high of Rs 76.85 on 27 December 2006 and a 52-week low of Rs 35.75 on 4 June 2007.

The Spentex Industries scrip had gained 0.79% over the last one month compared to the Sensex’s return of 0.73% over the same period. The company underperformed the market over the last one quarter, declining 29.85% compared to the Sensex’s gain of 12.07%.

The share price had rose from Rs 37.85 on 21 June 2007 to Rs 38.30 on 29 June 2007.

The scrip had an average daily volume of 24,780 shares in the past one quarter.

The company's equity capital is Rs 71.47 crore with a face value of Rs 10.

The current market price of Rs 38.75 discounts the annualised EPS of Rs Rs 5.54 in the quarter ended December 2006 by a PE multiple of 6.99.

At its meeting held on Saturday, 30 June 2007, Spentex Industries' board of directors approved the purchase of Schoeller Litvinov k.s. (Schoeller) in Czech Republic. The company made this announcement before market hours on Monday, 2 July 2007.

The acquisition of Schoeller was made for $25 million. The transaction will enhance the top line of the company by about euro 55 million and add another euro 6 million per year in cash flows. Schoeller is a leading yarn manufacturer in Europe with operations in Germany, the Benelux countries, France and the Czech Republic with customer base spread across European Union.

Spentex's net profit jumped 116.9% to Rs9.24 crore in Q3 December 2006 compared to Rs 4.26 crore in Q3 December 2005. Sales surged 164.1% to Rs 191.85 crore in Q3 December 2006 as against Rs 72.65 crore in Q3 December 2005.

On 15 February 2007, Spentex Industries had acquired 14,500 shares in Amit Spinning Industries through the open market route on 1 February 2007 and 2 February 2007. Post-acquisition, Spentex Industries shareholding in Amit Spinning Industries stands at 50.96%

Spentex Industries is one of the largest yarn manufacturers in the country.