Himatsingka Seide acquires 80% stake in Divatex Home Fashions (NY) for $ 53 Mn, Divatex reported $ 151 Mn revenues in 2006

Himatsingka Seide has completed the acquisition of an 80% stake in Divatex Home Fashions Inc. New York. This was consequent to signing definitive agreements in New York on July 01, 2007.

The enterprise value for the transaction was $ 75 million. The company has acquired the 80% stake through its wholly owned subsidiary, Himatsingka America Inc., and will pay $ 53 million for this stake.

Divatex reported revenues of $ 151 million for the year ended December 31, 2006 with an EBITDA of $ 14 million. Divatex was established in 1991 by Avi Gross and Ayelet Gross. It is among the top three distributors of bed linen products in the US.

This acquisition follows the acquisition of Giuseppe Bellora SpA, Italy in February 2007. It is in line with the Himatsingka strategy to forward integrate globally by acquiring high-end brands and large distribution networks in the home textile space. As Divatex is a large distributor of bed linen products, there will be significant synergies for sourcing requirements from the new $ 100 million bed linen facility of Himatsingka at the Hassan Special Economic Zone in Karnataka. The facility has commenced trial production and is likely to commence commercial production in July 2007.

Himatsingka America Inc is headquartered in New York and operates a large warehousing and distribution facility out of South Carolina.

Shrikant Himatsingka, Executive Director, said "Over the past year, Himatsingka has made significant investments in M&A, green field initiatives and organic expansions in its pursuit to emerge as an integrated global home textile company. Having completed two international acquisitions of Giuseppe Bellora and Divatex with combined revenues of approximately Rs 800 crore and the commencement or production at the Rs 400 crore bed linen facility, the company is positioned to achieve consolidated annualized revenues of over Rs 1000 crore. We will continue to explore opportunities for inorganic growth in the branded home textile space."

Dinesh Himatsingka, Managing Director said "Himatsingka will continue to create and strengthen its manufacturing capabilities in India while enhancing its global distribution strengths through acquisitions."




Subhash Projects & Marketing blooms on bagging water project in desert state

The scrip had hit a high of Rs 260.05 and a low of Rs 250 during the day and closed at Rs 260.05. It touched a 52-week high of Rs 273 on 3 January 2007 and a 52-week low of Rs 100.40 on 24 July 2006.

The Subhash Projects & Marketing scrip had risen 7.51% over the last one month to 2 July 2007 compared to the Sensex’s return of 0.64%. The company had outperformed the market over the past quarter, gaining 43.68% compared to the Sensex’s rise of 16.16%.

The share price had declined from Rs 234.55 on 31 May 2007 to Rs 221.80 on 19 June 2007. It gained since then to Rs 247.70 on 2 July 2007.

The scrip had an average daily volume of 34,488 shares in the past one quarter.

The company's current equity is Rs 6.23 crore, with each share of a face value of Rs 2.

The current market price of Rs 260.05 discounts its FY 2007 EPS of Rs 14, by a PE multiple of 18.57.

Subhash Projects & Marketing announced after market hours on Monday, 2 June 2007, that the company bagged a Rs 267-crore order from PHED, Jodhpur, Rajasthan for work related to supply of water from Jawai & Hemawas Dams (Pali district) to Pali town.

In April 2007, Subhash Projects had bagged power projects worth Rs 309 crore from Karnataka Power Transmission Corporation, Hubli Electricity Supply, and Power Grid Corporation (PGCIL), on a turnkey basis.

Subhash Projects & Marketing’s net profit rose 4.29% to Rs 13.38 crore in Q4 March 2007 as against Rs 12.83 crore in Q4 March 2006. Sales surged 84.02% to Rs 268.61 crore in Q4 March 2007 as against Rs 145.97 crore in Q4 March 2006.

Net profit soared 107.22% to Rs 43.62 crore in the year ended March 2007 (FY 2007) as against Rs 21.05 crore in FY 2006. Sales jumped 120.79% to Rs 808.44 crore FY 2007 as against Rs 366.15 crore in FY 2006.

The company announced the Q4 March 2007 and FY 2007 results during market hours today.

Subhash Projects & Marketing is an engineering, construction and project management company. Its services include water management, power generation, power transmission and distribution, environmental engineering, infrastucture development and engineering consultancy & services.




Real-estate counters stir on the approaching DLF listing

Sobha Developers was up 4.27% to Rs 971.10, Ansal Housing & Construction 2.15% to Rs 245.20, Indiabulls Real Estate 4.34% to Rs 435.00 and Parsvnath Developers 8.54% to Rs 351.45.

DLF debuts on the bourses on Thursday, 5 July 2007. The company had priced its IPO at Rs 525 per share. The price band for the IPO was Rs 500 to Rs 550. At Rs 525 per share, the IPO was priced 159 times its year ended March 2007 EPS of Rs 3.30. Each DLF share has a face value of Rs 2.

Though property prices have stabilised in recent months, they have nearly tripled over the last three years in some cities.

Sobha Developers' net profit surged 69.59% to Rs 61.90 crore in Q4 March 2007 as against Rs 36.50 crore in Q4 March 2006. Sales jumped 82.67% to Rs 357.30 crore in Q4 March 2007 as against Rs 195.60 crore in Q4 March 2006.

Ansal Housing & Construction’s net profit advanced 71.83% to Rs 13.30 crore in Q4 March 2007 as against Rs 7.74 crore in Q4 March 2006. Sales rose 31.62% to Rs 54.03 crore in Q4 March 2007 as against Rs 41.05 crore in Q4 March 2006.

Indiabulls Real Estate reported a net profit of Rs 6.01 crore on total income of Rs 14.39 crore in the quarter ended March 2007. It notched a net profit of Rs 13.12 crore on total income of Rs 27.06 crore in the year ended March 2007 (FY 2007).

Parsvnath Developer’s net profit showed a massive rise of 253.5% to Rs 132.44 crore in Q4 March 2007 as compared to Rs 37.4 crore in Q4 March 2006. Sales increased 68.4% to Rs 399.72 crore in Q4 March 2007(Rs 237.33 crore).




European number rings for Patni Computer Systems

The scrip had hit a high of Rs 524.40 and a low of Rs 515 during the day and closed at Rs 516.10. It touched a 52-week high of Rs 572.95 on 29 May 2007 and a 52-week low of Rs 251 on 21 July 2006.

The Patni Computer Systems stock had declined 7.18% over the last one month to 2 July 2007 compared to the Sensex’s return of 0.64%. The scrip had outperformed the market over the past quarter, gaining 36.14% compared to the Sensex’s rise of 16.16%.

The share price had declined from Rs 541.75 on 14 June 2007 to Rs 493.50 on 25 June 2007. It rose since then to Rs 514.20 on 2 July 2007.

The scrip had an average daily volume of 1.49 lakh shares in the past one quarter.

The company's current equity is Rs 27.74 crore, with each share of a face value of Rs 2.

The current market price of Rs 518.35 discounts its annualized Q1 March 2007 EPS of Rs 34.6 (based on consolidated results as per US GAAP), by a PE multiple of 14.98.

Patni Computer Systems announced during market hours today, 3 July 2007, that it had acquired Europe-based Logan-Orviss International (LOI), a leading independent specialist telecommunications consulting services company.

The consideration for acquisition includes an upfront cash payment on completion of the transaction as well as performance-linked incentive payments on achieving financial targets over a three-year period. LOI ended with revenue of euro 11.8 million in 2006.

Logan-Orviss International will become Patni’s telecommunications consulting & advisory practice, and will be led by Brendan Logan and Colin Orviss, the firm's co-founders.

Patni Computer Systems had announced on 11 June 2007 that it had formed a strategic partnership in UK with Clear Technology, a provider of software solutions for the insurance and financial services industries. Under the terms of the agreement, the company will provide process consulting and system integration services to Clear Technology. This will support Clear Technology in its efforts to fully capitalise on growing demand for its insurance and financial services solutions.

The company's net profit declined 6.09% to Rs 95.99 crore in Q1 March 2007 as against Rs 102.22 crore in Q4 December 2006. Sales dipped 0.49% to Rs 266.59 crore in Q1 March 2007 as compared to Rs 267.91 crore in Q4 December 2006.

Patni Computer Systems provides information technology services and solutions to customers operating in various industry segments. The group operates in seven segments: insurance services, manufacturing, financial services, software vendor, product engineering services, telecom and other.




IDFC mopped up on fund-raising plan

The scrip had hit a high of Rs 135.80 today, which is a lifetime high for the scrip. Its low was Rs 131.15 during the day and closed at Rs 131.70. It had touched a 52-week low of Rs 43.35 on 24 July 2006.

The Infrastructure Development Finance Company (IDFC) scrip had declined 16.07% over the last one month to 2 July 2007 compared to the Sensex’s return of 0.64%. The scrip had outperformed the market over the past quarter, gaining 71.17% compared to the Sensex’s rise of 16.16%.

The share price had declined from Rs 116.10 on 5 June 2007 to Rs 105.60 on 13 June 2007. It had risen since then to Rs 133.60 on 2 July 2007.

The scrip had an average daily volume of 16.19 lakh shares in the past one quarter.

The company's current equity is Rs 1128.47 crore, with each share of a face value of Rs 10.

The current market price of Rs 133.60 discounts its FY 2007 EPS of Rs 4.4 (based on consolidated results) by a PE multiple of 30.36.

As per the reports, IDFC is planning to shortly raise about $500 million through a qualified institutional placement.

On 25 April 2007, the board of directors of the company had approved a plan to raise capital through issue of equity or quasi-equity instruments upto $ 500 million subject to the approval of the shareholders.

Meanwhile. IDFC has decided to increase its equity stake in equity brokerage SSKI Securities to 66.6%, from 33.33%, the company informed the stock exchanges recently

IDFC's net profit rose 15.69% to Rs 85.09 crore in Q4 March 2007 as against Rs 73.55 crore in Q4 March 2006. Operating income jumped 59.6% to Rs 410.38 crore.

Net profit was up 23.22% to Rs 462.87 crore in the year ended March 2007(FY 2007) as against Rs 375.64 crore in FY 2006. Operating income advanced 50.1% to Rs 1,505.74 crore.

IDFC is positioned as a specialised intermediary in infrastructure financing. It also offers non-fund-based products such as guarantees, debt-syndication, and advisory services on project and financial structuring.





Himatsingka Seide gets snapped on shopping for US linen

The scrip had hit a high of Rs 131.80 and a low of Rs 121.45 during the day and closed at Rs 121.95. It had touched a 52-week high of Rs 150 on 29 January 2007 and a 52-week low of Rs 86 on 24 July 2006.

The Himatsingka Seide stock had risen 6.94% over the last one month to 2 July 2007 compared to the Sensex’s return of 0.64%. The company underperformed the market over the past quarter, gaining 3.10% compared to the Sensex’s rise of 16.16%.

The share price rose from Rs 108.95 on 22 June 2007 to Rs 117.95 on 2 July 2007.

The scrip had an average daily volume of 16,704 shares in the past one quarter.

The company's current equity is Rs 48.72 crore, with each share of a face value of Rs 5.

The current market price of Rs 122.95 discounts its FY 2007 EPS of Rs 5.60 by a PE multiple of 21.95.

Himatsingka Seide said before trading hours today, 3 July 2007, that it has acquired an 80% stake in US-based Divatex Home Fashions Inc. for $53 million. The enterprise value of the transaction is $75 million, it said.

The company has acquired the 80% stake through its wholly owned subsidiary, Himatsingka America Inc

Divatex is among the top three distributors of bed linen products in the US. It is headquartered in New York and operates a large warehousing and distribution facility out of South Carolina. Divatex reported revenue of $151 million in the year ended December 31, 2006 with earnings before interest, tax, depreciation and amortization (EBITDA) of $14 million

In March 2007, Himatsingka Seide acquired a 59.74% stake for euro 20 million (including euro 7 milion of long-term debt) in Giuseppe Bellora SpA, Italy. It had acquired the stake from a private equity firm and the promoter family. In addition, it infused an incremental euro 3.75 million as fresh equity to increase its stake in the Italian firm to 70% Giuseppe Bellora is a pan-European luxury brand in the bed linen segment

The company's net profit declined 24.77% to Rs 8.90 crore Q4 March 2007 as against Rs 11.83 crore in Q4 March 2006. Sales rose 14.1% to Rs 43.17 crore in Q4 March 2007 as against Rs 37.82 crore in Q4 March 2006.

Net profit rose 13.04% to Rs 54.61 crore in the year ended March 2007 (FY 2007) as against Rs 48.31 crore in FY 2006. Sales advanced 15.83% to Rs 174.16 crore FY 2007 as against Rs 150.36 crore in FY 2006.

Himatsingka Seide is a 100% export oriented unit (EOU), manufacturing and marketing natural silk fabric.





Hero Honda Motors stalled as sales slump in June 2007

The scrip had hit a high of Rs 696.90 and a low of Rs 686.05 during the day and closed at Rs 688.55. It had touched a 52-week high of 809 on 3 July 2006 and a 52 week low of Rs 565 on 19 April 2007.

Hero Honda Motors stock had dipped 3.65% over the last one month to 2 July 2007 compared to the Sensex’s return of 0.64%. The company underperformed the market over the past quarter, gaining 4.85% compared to the Sensex’s rise of 16.16%.

The share price had fallen from Rs 732.35 on 31 May 2007 to Rs 653.70 on 18 June 2007. It had recovered later to reach Rs 690.80 on 2 July 2007.

The scrip had an average daily volume of 53,353 shares in the past one quarter.

The company's current equity is Rs 39.94 crore, with each share of a face value of Rs 2.

The current market price of Rs 690.90 discounts its FY 2007 EPS of Rs 43, by a PE multiple of 16.06.

After trading hours on Monday, 2 July 2007, Hero Honda reported 8.4% decline in sales in June 2007 to 2.55 lakh units.

Hero Honda Motors net profit declined 27.02% to Rs 195.00 crore Q4 March 2007 as against Rs 267.19 crore in Q4 March 2006. Sales rose 17.01% to Rs 2,639.58 crore in Q4 March 2007 as against Rs 2,255.88 crore in Q4 March 2006.

The net profit declined 11.68% to Rs 857.89 crore in the year ended March 2007 (FY 2007) as against Rs 971.34 crore in FY 2006. Sales rose 13.61% to Rs 9,899.96 crore in FY 2007 as against Rs 8,713.98 crore in FY 2006.

Honda Motors announced on 12 June 2007 that the company has decided to close its register of members and share transfer books from 12 July 2007 to 24 July 2007 (both days inclusive) for the purpose of annual general meeting (AGM) to be held on 24 July 2007 and ascertaining the entitlement of members for payment of dividend of 850%, i.e., Rs.17 per equity share of Rs 2 each for FY 2007




Sluggish June 2007 sales do not dent Tata Motors

The scrip had hit a high of Rs 694 and a low of Rs 684 during the day and closed at Rs 687.95. It had touched a 52-week high of 974.80 on 17 January 2007 and a 52-week low of Rs 635 on 12 June 2007.

The scrip had dipped 8.45% over the last one month to 2 July 2007 compared to the Sensex’s return of 0.64% over the same period. The company underperformed the market over the past quarter, gaining 0.43% compared to the Sensex’s rise of 16.16%.

The Tata Motors share price had risen from Rs 641.35 on 12 June 2007 to Rs 684.40 on 26 June 2007. It fell since then to Rs 669.75 on 29 June 2007 before recovering to Rs 684.05 on 2 July 2007.

The scrip had an average daily volume of 3.60 lakh shares in the past one quarter.

The company's current equity is Rs 385.43 crore, with each share of a face value of Rs 10.

The current market price of Rs 688 discounts its FY 2007 EPS of Rs 56.3 (based on consolidated results) by a PE multiple of 12.22.

Tata Motors registered a 2% fall in vehicle sales to 44,317 units in June 2007. Exports rose 5.5% to 5,482 units. Sales of commercial vehicles fell 0.7% to 21,417 units in June 2007, from 21,565 units in June 2006, while sales of cars and utility vehicles dropped 5.7% to 17,418 units in June 2007. The announcement was made after trading hours on Monday, 2 July 2007.

Reports last month suggested that the company had cut the production of passenger cars by 20% at its Pune plant.

Tata Motors net profit rose 25.89% to Rs 576.72 crore in Q4 March 2007, from Rs 458.11 crore in Q4 March 2006. Sales moved up 20.11% to Rs 8267 crore (Rs 6882.75 crore).

Net profit was up 25.15% to Rs 1913.46 crore in the year ended March 2007, from Rs 1528.88 crore in FY 2006. Sales jumped 33.31% to Rs 27535.24 crore in FY 2007 as against Rs 20654.35 crore in FY 2006.

Tata Motors said on 21 June 2007 it would raise $450 million (approximately Rs 1,836 crore) by issuing appropriate securities in the international markets. The company has also kept open a greenshoe option.

The funds would be utilised to meet product development expenses apart from other unspecified corporate purposes. The move is part of the Rs 12,000-crore (around $2.6 billion) investment plan that the company intends to make over the next three to four years. The expansion is primarily aimed at meeting the projected rise in demand in domestic and international markets in the future.

The company is into manufacturing of light, medium and heavy commercial vehicles. It also manufactures passenger cars, utility vehicles, excavators and machine tools.




Bonus engineering is on Valecha Engineering's road ahead

The scrip had hit a high of Rs 277.40 and a low of Rs 259.40 during the day and closed at Rs 271.55. It had touched a 52-week high of Rs289.70 on 7 February 2007 and a 52-week low of Rs 125 on 24 July 2006.

The scrip had an average daily volume of 25,610 shares in the past one quarter.

Valecha Engineering scrip had gained 3.89% over the last one month to 2 July 2007 compared to the Sensex’s return of 0.64% over the same period. The company outperformed the market over the past quarter, gaining 27.96% compared to the Sensex’s rise of 16.16%.

The share price had risen from Rs 236.85 on 18 June 2007 to Rs 268.85 on 26 June 2007. It had declined later to reach Rs 252.20 on 2 July 2007.

The company's current equity is Rs 7.95 crore, with each share of a face value of Rs 10. The book value is Rs 203.80 per share.

The current market price of Rs 274.40 discounts its FY 2007 EPS of Rs 38.01 by a PE multiple of 7.21.

Valecha Engineering announced on Monday, 2 June 2007, after market hours that a meeting of the board of directors of the company will be held on 30 July 2007, to take on record the unaudited financial results for the quarter ended 30 June 2007 and to consider issue of bonus shares.

Valecha Engineering’s net profit declined 95.21% to Rs 1.05 crore in Q4 March 2007 as against Rs 21.90 crore in Q4 March 2006. Sales rose 61.40% to Rs 80.91 crore in Q4 March 2007 as against Rs 50.13 crore in Q4 March 2006.

Net profit inched up 3.51% to Rs 27.75 crore in the year ended March 2007 (FY 2007) as against Rs 26.81 crore in FY 2006. Sales surged 63.70% to Rs 247.81 crore in FY 2007 as against Rs 151.38 crore in FY 2006.

Valecha Engineering said on 18 April 2007 that it bagged new projects worth Rs 100 crore. These projects include road works at New Delhi, Punjab, & Arunchal Pradesh and construction job for Delhi Metro Rail Corporation. This takes its order book position close to the Rs 1000- crore mark.

Valecha Engineering has over the past undertaken turnkey projects for highways, bridges, canals, tunnels, dams and commercial real estate as well as for airports. The company focuses on road projects