Heard on the street (20 Feb, 2008)

Heard on the street
20 Feb, 2008, 0250 hrs IST, TNN

Delton Cables rides on realty buzz

Talks of Delton Cables looking to develop a surplus land of 48-50 acres in its Dharuhera plant in Haryana are turning the spotlight on the company. As per the market buzz, it is in talks with a Delhi-based real estate developer to assess the potential for development. This is expected to unlock value for its shareholders.

Repeated emails to the company did not elicit any response. Delton Cables also owns a factory situated in Faridabad on over a 2-acre plot, the land value of which is pegged at about Rs 30 crore per acre.

Even though an active unit, market sources say that the land value has prompted the company to relocate this factory. The company has a market cap of about Rs 35 crore. The stock closed at Rs 121 on BSE, up 2% from the previous close.

India fund fishes for Essar Shipping shares

An India-focused investment advisory firm is said to be accumulating shares of Essar Shipping. According to market sources, the fund already has a sizeable stake in the company, and is further shoring up from the market. The stock price has been ruling steady amid a volatile market.

The company has been in the news recently for its major restructuring exercise. Market sources add few brokerages are also expected to initiate coverage on the stock. It closed at Rs 211, down 2.7% on Tuesday.

Disa’s 2000% dividend catches investors’ fancy

Uncertain times call for a selective approach. And that is just what investors are doing these days. Many investors focus on stocks with high assured returns. For instance, Disa India, a small-cap MNC stock, has seen a 36% upswing over the past few days, courtesy the high dividend yield offered by the company.

Disa India announced a FY07 dividend of 2000%, or Rs 200 per share, offering an attractive dividend yield of around 10%. While the scrip hit the 20% upper circuit on Monday, it gained further ground on Tuesday when it shot up 11% to Rs 2,028.

Last year, Disa’s foreign promoters had made an open offer to shareholders with the purpose of delisting the shares from stock exchanges. The offer fell through then, but there is growing speculation about another attempt from the parents at a higher price.