Unitech cools off

Unitech cools off

Unitech declined 3.9% to Rs 401.05 at 15:02 IST on BSE despite the West Bengal government giving possession of 12,500 acres of land at Nayachar Island, near Haldia, in the state to the developer PCR Chemicals.

United announced this after market hours on 15 February 2008.

Meanwhile, BSE Sensex was down 58.53 points or 0.34% to 18,053.28. On BSE, 21.71 lakh shares were traded in the counter. The scrip had an average daily volume of 11.15 lakh shares in the past one quarter.

The stock hit a high of Rs 430 and a low of Rs 396.35 so far during the day. The stock had a 52-week high of Rs 546.80 on 2 January 2008 and a 52-week low of Rs 160.13 on 6 March 2007.

The stock rose 34.73% from its recent low of Rs 309.50 on 12 February 2008 to Rs 417.15 on 15 February 2008.

The large-cap scrip had underperformed the market over the past one month till 15 February 2008, declining 14.9% compared to the Sensex’s decline of 8.05%. It however outperformed the market in the past one quarter, rising 7.03% compared to Sensex’s decline of 8.04%.

The company’s current equity is Rs 324.68 crore. Face value per share is Rs 2. The current price of Rs 401.05 discounts its Q3 December 2007 annualized EPS of Rs 9.09, by a PE multiple of 44.11.

PCR Chemicals is a 51:49 joint venture between New Kolkata International Development (NKID) and West Bengal Industrial Development Corporation. NKID is a consortium between Unitech (40%), Salim Group of Indonesia (40%) and Universal Success of Indonesia (20%). NKID entered into a development agreement with the state government of West Bengal on 31 July 2006 for development of mega infrastructure in the state

Meanwhile, as per reports Unitech, is developing 97 acres of slums near the Vakola flyover on the Western Express Highway, in Mumbai. The project, which is close to the Santa Cruz railway station on the east, is estimated to cost Rs 1,900 crore, and will involve the rehabilitation of 20,000 families. Unitech has joined hands with Pune-based developer Rohan Group for the project.

Unitech’s net profit declined 18.4% to Rs 368.92 crore on 18.4% decline in sales to Rs 818.51 crore in Q3 December 2007 over Q3 December 2006.

Unitech is engaged in civil engineering, construction and housing development projects. It has also undertaken the construction of thermal power, steel and petrochemical plants and public utility buildings for a number of reputed public and private sector companies.