Shree Ashtavinayak Cine Vision Ltd. “Buy”

CMP : Rs 386 Target : Rs 557

Shree Ashtavinayak Cine Vision Ltd (SACVL) is leading player in film production and distribution business and has produced seven films so far, out of which its last five films have proved to be quite successful at box-office. SACVL is one of the rare production houses having delivered continuous successful films. In distribution business, SACVL is a market leader in Mumbai territory and its expertise in good selection of films enables a high success ratio. SACVL has aggressive plans for scaling up its production as well as distribution business. It has lined up 13 films to be released in next two years and has signed up reputed directors with top star casts. Under its distribution business, SACVL plans to expand its geographical presence by entering into Delhi/UP, Punjab territory and also planning to enter into overseas distribution. To meet its funding requirements of production as well as distribution, SACVL has recently raised $34.25mn through FCCB. We expect Total Revenue & PAT to grow at a CAGR of 113.4% and 83% over FY08-10. We initiate coverage with a “BUY” recommendation and price target of Rs 557, an upside of 44.3%, based on 14x FY10E EPS of Rs 39.8.

NW

Basant Agro Tech India Ltd (CMP Rs 46.80)

The company has informed that the Government of India has enhanced the subsidy on SSP Fertiliser for the year 2008-09. Henceforth the subsidy on SSP Fertiliser shall be Rs 3658/- Per MT against Rs 1125/- Per MT, which is almost 225% increase. It has also announced the uniform all India MRP for SSP Fertiliser. Considering the revised MRP & enhanced subsidy on SSP Fertiliser the Company will be benefited substantially as the net realization will improve.

Also subsidy will be linked to price escalation which again will benefit the Company. We believe that this will have positive impact on overall performance of the company in

long run & bottom line of the company will improve. At CMP, the stock is trading at 6.95x its trailing earnings. We recommend an “ACCUMULATE”.

Merck gains after Q1 numbers

Merck gained 1.56% to Rs 338.55 at 15:22 IST on BSE after posting 1.61% rise in net profit to Rs 16.19 crore in Q1 March 2008 over Q1 March 2007.

The stock hit a high of Rs 348 and a low of Rs 334.05 so far during the day. The stock had a 52-week high of Rs 460 on 4 January 2008 and a 52-week low of Rs 310 on 24 March 2008.

The company’s current equity is Rs 16.86 crore. Face value per share is Rs 10.

The current price of Rs 338.55 discounts its Q4 December 2007 EPS of Rs 41.33, by a PE multiple of 8.19.

Merck’s sales rose 18.40% to Rs 83.63 crore in Q1 March 2008 over Q1 March 2007.

Merck is engaged in manufacturing and marketing pharmaceuticals and chemicals. Pharmaceuticals include antibiotics, anti-malarials, cardiologicals, cough and cold formulations, dermatologicals, haematinics, neurologicals, oral rehydration salts and non-steroidal anti-inflammatory drugs. Chemicals include pigments and chemicals that are used in the cosmetics, health and nutrition industries. The group also manufactures and markets tablet, capsules, reagents, kits, equipment, paper rolls and booklets.

Power Finance Corporation trips on lower Q4 net profit

Power Finance Corporation dropped 2.54% to Rs 159.55 at 14:27 IST on BSE after posting 19.91% fall in net profit to Rs 297.32 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 171.80 and a low of Rs 159.25 so far during the day. The stock had a 52-week high of Rs 297.40 on 14 November 2007 and a 52-week low of Rs 107.65 on 17 April 2007.

The company’s current equity is Rs 32.62 crore. Face value per share is Rs 10.

The current price of Rs 159.55 discounts its Q3 December 2007 EPS of Rs 11.17, by a PE multiple of 14.28.

Power Finance Corporation’s total income rose 10.37% to Rs 1,366.73 crore in Q4 March 2008 over Q4 March 2007.

On 27 March 2008, Power Finance Corporation signed a memorandum of understanding with RITES to combine its resources and expertise to facilitate import of coal from African countries.

The company provides funds based services like term loans, equipment leasing, bill discounting, buyer’s line of credit. It also provides non-funds based services like guarantee services, consultancy services, to the power sector.

Federal-Mogul Goetze (India) plans rights issue

Federal-Mogul Goetze (India) soared 6.85% to Rs 71 at 14:04 IST on BSE after the company said its board will meet on 24 April 2008 to consider rights issue of equity shares.

The stock hit a high of Rs 74 and a low of Rs 67.65 so far during the day. The stock had a 52-week high of Rs 269.75 on 8 May 2007 and a 52-week low of Rs 50.65 on 25 March 2008.

The company’s current equity is Rs 32.62 crore. Face value per share is Rs 10.

Federal-Mogul Goetze (India) reported a net loss of Rs 15.57 crore in Q4 December 2007 as compared to net loss of Rs 12.18 crore in Q4 December 2006. Net sales rose 15.7% to Rs 154.90 in Q4 December 2007 over Q4 December 2006.

The company is engaged in manufacturing auto components. The products include piston rings, sintered parts and cylinder liners for two, three and four wheelers, cars, tractors, light commercial vehicles, heavy commercial vehicles, stationary engines and high output locomotive diesel engines.

Ceat mega expansion plan

Ceat jumped 20% to Rs 124.60 at 13:54 IST on BSE on reports that the company will invest Rs 1,000 crore in next two to three years on expanding capacity, increasing focus on research & development, market expansion, and improving customer interface.

The stock hit a high of Rs 124.60 and a low of Rs 105.90 so far during the day. The stock had a 52-week high of Rs 244 on 10 December 2007 and a 52-week low of Rs 92.45 on 27 March 2008.

The company’s current equity is Rs 34.24 crore. Face value per share is Rs 10.

The current price of Rs 124.60 discounts its Q3 December 2007 annualised EPS of Rs 22.45 by a PE multiple of 5.55.

Ceat’s net profit rose 63.2% to Rs 19.22 crore on 5.1% growth in net sales to Rs 564.11 crore in Q3 December 2007 over Q3 December 2006.

Reports said that Ceat plans to raise funds through a mix of internal accruals, borrowings and sale of land assets which it holds in Bhandup, Mumbai. Collectively the company holds 23 acres of land, after selling 7 acres for Rs 130 crore earlier this year.

The total investment includes setting up two green field facilities worth Rs 900 crore. One of the plants will be a dedicated radial truck and car facility. The other will make speciality and off-the-road tyres. The new facilities and increase in production will result in an overall hike to 15 million units a year. The company will also spend Rs 25 crore on brand building, which will involve promotion of the brand through advertising in the media.

Meanwhile, Ceat will raise tyre prices by 5% effective 18 April 2008, to offset steady rise in rubber prices.

Ceat, previously Ceat Tyres, the flagship of the RPG group, manufactures steel-belted radials for passenger cars. The range of tyres manufactured is marketed under the Ceat, Samraat and Secura brand names.

Goldstone Infratech shines

Goldstone Infratech surged 6.27% to Rs 39 at 13:41 IST on BSE on reports the company is in talks with Korea based Jusung and TS Solar Power for setting up a solar power module manufacturing facility near Hyderabad in the state of Andhra Pradesh.

The stock hit a high of Rs 40.35 and a low of Rs 37 so far during the day. The stock had a 52-week high of Rs 69.60 on 8 January 2008 and a 52-week low of Rs 19.70 on 19 June 2007.

The company’s current equity is Rs 8.41 crore. Face value per share is Rs 4.

The current price of Rs 39 discounts its Q3 December 2007 EPS of Rs 4.78, by a PE multiple of 8.16.

Goldstone Infratech’s net profit rose 364.8% to Rs 2.51 crore on 105.3% growth in net sales to Rs 10.49 crore in Q3 December 2007 over Q3 December 2006.

The total cost of the project is $65 million, of which $25 million will be equity and the rest debt. Goldstone Infratech will have majority equity by investing $15 million and the other two Korean based companies jointly will invest $10 million, report added.

Jusung and TS Solar Power are semiconductor and solar cell manufacturing companies based in Korea.

On 11 March 2008, Goldstone Infratech forayed into renewal energy space by setting up a five-megawatt (MW) solar power plant and a production facility to manufacture photovoltaic modules for solar power generation.

The company is engaged in manufacturing telecom cable closures and provides business process outsourcing (BPO) services and supplies composite insulators. The products include jelly filled telephone cable jointing and sub kits, composite polymer insulators and thermo weld filled heat shrinkable sleeves.

Deccan Chronicle Holdings Hike in advertisement rate

Deccan Chronicle Holdings gained 2.93% to Rs 151.20 at 12:29 IST on BSE on launching its new financial daily Financial Chronicle in Hyderabad and Chennai.

The stock hit a high of Rs 158 and a low of Rs 148 so far during the day. The stock had a 52-week high of Rs 270.10 on 4 January 2008 and a 52-week low of Rs 134.45 on 24 March 2008.

The company’s current equity is Rs 48.98 crore. Face value per share is Rs 2.

The current price of Rs 151.20 discounts its Q3 December 2007 EPS of Rs 16.81, by a PE multiple of 8.99.

Deccan Chronicle Holdings’ net profit rose 112.5% to Rs 102.94 crore on 47.7% growth in net sales to Rs 216.20 crore in Q3 December 2007 over Q3 December 2006.

Deccan Chronicle Holdings also said today, 16 April 2008, it has increased its advertisement tariff across all its editions by 30% with immediate effect.

Deccan Chronicle Holdings's principle activity is to publish newspapers. The company's English daily is circulated in Hyderabad and Andhra Pradesh.

Orchid Chemicals soaring on Takeover battle

Orchid Chemicals & Pharmaceuticals surged 12.12% to Rs 369.15 at 11:19 IST on BSE after 1.9% of the company’s equity changed hands on the counter on BSE.

The stock hit a high of Rs 323.90 and a low of Rs 285 so far during the day. The stock had a 52-week high of Rs 328 on 17 January 2008 and a 52-week low of Rs 106.50 on 24 March 2008.

The company’s current equity is Rs 65.85 crore. Face value per share is Rs 10.

The current price of Rs 369.15 discounts its Q3 December 2007 EPS of Rs 32.88, by a PE multiple of 11.22.

Orchid Chemicals & Pharmaceuticals’ net profit rose 91.1% to Rs 54.12 crore on 39.4% growth in net sales to Rs 332.69 crore in Q3 December 2007 over Q3 December 2006.

A total of 12 lakh shares (1.90% of the company’s equity) changed hands on Orchid Chemicals & Pharmaceuticals counter on BSE through multiple block deals on the BSE at an average price of Rs 302.40 per share.

On Tuesday, 15 April 2008, foreign fund Morgan Stanley picked up 0.50% stake in the company for Rs 8.90 crore in open market transactions. The global financial major Morgan Stanley bought 3.30-lakh shares on the BSE and 4.2-lakh shares on the NSE through bulk deals.

Orchid Chemicals & Pharmaceuticals shares have been witnessing heightened activity recently amidst speculations of its takeover by a Ranbaxy promoter group firm. Recent media reports that stated that Solrex Pharmaceuticals, a privately-held firm linked with Ranbaxy promoters, has hiked its stake to 14.7% via creeping acquisition route through a slew of block deals since 31 March 2008 taking it very close to triggering an open offer. The relatively low promoter holding at 15.87% on the other hand makes it vulnerable to a hostile takeover bid.

On 20 February 2008, Orchid Chemicals & Pharmaceuticals received approval from the US Food & Drug Administration (US FDA) for its abbreviated new drug application for cefuroxime axetil tablets.

In January 2008, the company announced that its formulation facilities, comprising of cephalosporin and penicillin plant had received approved by the Medicines Control Council, South Africa.

The company is engaged in manufacturing and selling pharmaceuticals ingredients and finished dosage forms. It focuses on the cephalosporin range of antibiotics. The company exports to Asia Pacific, Europe, Middle East, South and Central America, North America and Commonwealth of Independent States (CIS) Countries.

Rallis India rallies on good FY 2008 results

Rallis India galloped 9.68% to Rs 448 at 10:40 IST on BSE after the company reported 115.40% spurt in net profit in the year ended March 2008 over March 2007

Shares of the Tata group agrochemicals company hit a high of Rs 475 and low of Rs 424 so far during the day

The stock had hit a 52-week high of Rs 675 on 3 January 2008 and 52-week low of Rs 258.20 on 23 August 2007.

The company’s current equity is Rs 11.98 crore. Face value per share is Rs 10.

The current price of Rs 448 discounts Q3 December 2007 annualised EPS of Rs 46.81 by a PE multiple of 9.57.

Rallis India reported 115.40% surge in net profit to Rs 125.19 crore on 7.60% rise in net sales to Rs 692.15 crore in the year ended March 2008 (FY 2008) over the year ended March 2007 (FY 2007).

However, the company reported 14.60% fall in net profit to Rs 7.87 crore on 10% rise in net sales to Rs 144.33 crore in Q4 March 2008 over Q4 March 2007.

Rallis India is engaged in manufacturing and distribution of pesticides, fertilisers and fine chemicals.

Reliance Industrial Infrastructure surges on good Q4 show

Reliance Industrial Infrastructure was locked at upper limit of 5% at Rs 999.85 at 11:02 IST on BSE after posting 52.4% rise in net profit to Rs 6.43 crore in Q4 March 2008 over Q4 March 2007

The stock hit a high of Rs 999.85 and a low of Rs 999.85 so far during the day. The stock had a 52-week high of Rs 3202.25 on 31 October 2007 and a 52-week low of Rs 410 on 16 April 2007.

The company’s current equity is Rs 15.10 crore. Face value per share is Rs 10. The current price of Rs 999.85 discounts its Q4 March 2008 EPS of Rs 17.03, by a PE multiple of 58.71.

Reliance Industrial Infrastructure’s net sales rose 38.6% to Rs 18.92 crore in Q4 March 2008 over Q4 March 2007.

Reliance Industrial Infrastructure’s principal focus is on construction, setting up industrial infrastructure and project related activities for the group companies. The parent Reliance Industries holds 46.23% in the firm.

Post Market Commentary-16-April-08

Market extends gains as heavyweights rise

The 30-share BSE Sensex rose 90.53 points or 0.56% at 16,244.19. The Sensex gained 260.14 points at day�s high of 16,413.80, hit in early trade.

The S&P CNX Nifty rose 7.65 points or 0.16% at 4887.30.

Rallis India galloped 5.82% to Rs 432.50 after the company reported 115.40% surge in net profit to Rs 125.19 crore on 7.60% rise in net sales to Rs 692.15 crore in the year ended March 2008 (FY 2008) over the year ended March 2007 (FY 2007).

Reliance Industrial Infrastructure was locked at upper limit of 5% at Rs 999.85 after posting 52.4% rise in net profit to Rs 6.43 crore on 38.6% rise in sales to Rs 18.92 crore in Q4 March 2008 over Q4 March 2007.

In the calendar year so far, FIIs sold shares worth a net Rs 11720.90 crore (till 15 April 2008), to offset their huge losses in the US sub-prime mortgage market.

'It's consolidation time, we may not see a further slide'

15 Apr, 2008, 2130 hrs IST,Deeptha Rajkumar, TNN

The overweight position on India has been reduced, and from a net flow perspective, in emerging markets, the beneficiaries have been Thailand, Taiwan and Pakistan, says Stuart Smythe, ED, head-equities, Macquarie Capital Securities. In conversation with ET, Mr Smythe spoke of how a volatile currency, inflation, the possibility of political change plus the changing regulatory landscape in a de-risking environment all add up to a reasonably benign outlook on India.

Where do you think the market is right now and where is it headed?

I think, you will see the market remain relatively benign. There is a confluence of upcoming factors that is likely to impact direction. One, very high inflation, which looks like it’s going to get close to double digit, and two, without question a GDP growth scenario which is going to slow. Now, the mechanisms by which you control inflation and GDP don’t always work in tandem. Emerging markets typically dislike three things — volatile currency, inflation risks and possibility of a changing political landscape. The only three markets, which are close to positive in the entire region, are Pakistan, Thailand and Taiwan. So, while India has these things in the pipeline for the next 9-12 months, I don’t think you are going to see any huge level of out performance coming to play.


So, does that mean we are in a bear market?

No, I don’t think we are in a bear market. I think we are in a consolidation phase which is good. If the economy slows down by 100 bps, everyone gets space to breathe. So, I am not particularly concerned. We are still talking 7-8% growth. In Europe and the US, you barely have 1-2% growth, so you are still talking very strong growth. It’s just the capital market that is seeing a realignment of funds. You are seeing a derating or derisking of flow.

inteview Extracts from :Economictimes

MTM operating loss of $7 m on hedging: Infy

Infy has hedged positions of USD 760 million. Their mark-to-market operating losses are of USD 7 m on hedging. The company is looking at reducing onsite buisness by 1% every year.

Infosys CFO Mr.V.BALAKRISHNAN Given a reply to CNBC …

Q: It’s been a more calm quarter for the rupee - what have you factored in by way of a hedge, this time around?

Balakrishnan: We have around USD 760 million of hedging positions as of March-end. It was USD 1.14 billion in the December quarter. We believe that technically the Rupee should depreciate because the trade deficit is still very high - it could be close to USD 100 billion this year. Oil price is still high at USD 110/bbl - India imports around USD 70 billion to USD 75 billion of oil every year, and also the inflows are coming down. If you look at the last two months, the co-relation between the BSE index and the Rupee-Dollar rate is almost same; that is one on one.

So the inflows are coming down; technically the rupee could depreciate, but the inflation is very high. So probably the RBI could appreciate the currency. To manage it, we believe that in the short term, it’s going to be volatile and going to move both ways. We have to actively manage our exposures and hedge it properly. In fact, the mark-to-market dollar instrument - that is one of the biggest concerns in the whole market today - about the hedging losses, the mark-to-market dollar hedging positions.

Every quarter, we adapt Accounting Standard 30 (AS-30); there is a big debate whether to adapt this Standard or not, I am disappointed with the Institute, because they are making it mandatory from 2011 - that Standard should have made mandatory immediately.

All the companies who have mark-to-market their hedging positions or at least tell the investors what is the impact of mark-to-markets, today the information flow is not there, and it’s not fair to investors.

So we adapt that Accounting Standard; we are marking to market all our instruments like what we were doing in the earlier quarters, and for us, the impact is not material; we had a non-operating loss of around USD 12 million - we had a benefit of USD 5 million for the operating income and our net income is only USD 7 million

Aban Offshore sets sail on new order win

Aban Offshore gained 1.86% to Rs 3359.90 at 15:19 IST on BSE after the company said it has secured a contract worth about $34 million from Exxon Neftegas for deployment of a rig in Murmanskaya Offshore, Russia.

The stock hit a high of Rs 3449 and a low of Rs 3226.10 so far during the day. The stock had a 52-week high of Rs 5555 on 20 November 2007 and a 52-week low of Rs 2232 on 19 April 2007.

The company’s current equity is Rs 7.56 crore. Face value per share is Rs 2.

The current price of Rs 43.85 discounts its Q3 December 2007 EPS of Rs 50.62, by a PE multiple of 4.33.

Aban Offshore’s net profit rose 129.8% to Rs 47.77 crore on 34% growth in net sales to Rs 169.07 crore in Q3 December 2007 over Q3 December 2006.

In March 2008, Aban Offshore received a letter of intent for the deployment of a newly built jack-up rig.

In February 2008, the company’s subsidiary secured a contract worth about $25 million from PTTEP International.

Aban Offshore is India’s largest private sector offshore drilling entity. It provides oil field services for offshore exploration and production of hydrocarbons to the oil industry in India and abroad.

GVK Power & Infrastructure trips

GVK Power & Infrastructure declined 1.35% to Rs 43.85 at 14:23 IST on BSE on reports the company plans to hive off its energy vertical into a separate company, ahead of a possible initial public offering for the proposed company.

The stock hit a high of Rs 44.80 and a low of Rs 43.15 so far during the day. The stock had a 52-week high of Rs 93.50 on 6 December 2007 and a 52-week low of Rs 31.50 on 26 April 2007.

The company’s current equity is Rs 140.58 crore. Face value per share is Rs 1.

The current price of Rs 43.85 discounts its Q3 December 2007 EPS of Rs 10.12, by a PE multiple of 4.33.

GVK Power and Infrastructure’s net profit rose 3286.7% to Rs 35.56 crore on 46.2% growth in net sales to Rs 3.80 crore in Q3 December 2007 over Q3 December 2006.

The company's principal activity is to operate power plants.

JK Tyre speeds up on overseas acquisition

JK Tyre & Industries surged 4.34% to Rs 121.40 at 13:51 IST on BSE after the company said on Friday, 11 April 2008, its board has approved the acquisition of a $200 million Mexican tyre-producing company Tornel for Rs 270 crore.

The stock hit a high of Rs 128 and a low of Rs 119.40 so far during the day. The stock had a 52-week high of Rs 195 on 3 January 2008 and a 52-week low of Rs 104 on 24 March 2008.

The company’s current equity is Rs 30.79 crore. Face value per share is Rs 10.

The current price of Rs 121.40 discounts its Q1 December 2007 EPS of Rs 28.24, by a PE multiple of 4.30.

Tornel specializes in passenger car radials. It has a total capacity of 6.6 million tyres at its three plants located in Mexico

JK Tyre & Industries’ net profit rose 166.1% to Rs 21.74 crore on 9.9% growth in net sales to Rs 722.88 crore in Q1 December 2007 over Q1 December 2006.

The company is engaged in designing, developing, manufacturing, distributing and servicing of conventional and radial tyres, tubes and flaps. It manufactures truck and bus radials, steel radials for cars, light commercial vehicle (LCV), truck and bus. Radial brands of the group include Ultima and Rally.

KEC International wins New order

KEC International declined 1.17% to Rs 590 at 13:01 IST on BSE despite bagging two contracts worth Rs 155.24 crore from Power Grid Corporation of India for supply and construction of 400 kilovolt double circuit transmission line in Kerala.

The stock hit a high of Rs 599.30 and a low of Rs 582.25 so far during the day. The stock had a 52-week high of Rs 922 on 8 November 2007 and a 52-week low of Rs 501 on 12 June 2007.

The company’s current equity is Rs 49.34 crore. Face value per share is Rs 10.

The current price of Rs 590 discounts its Q3 December 2007 EPS of Rs 55.51, by a PE multiple of 10.63.

On 12 March 2008, KEC International bagged two contracts worth Rs 46 crore from Madhya Pradesh Power Transmission Company for the supply and construction of a 220-kilovolt double circuit transmission.

On 10 March 2008, KEC International bagged a contract worth Rs 482 crore - the single largest order in the history of the company.

In February 2008, the company secured two orders worth Rs 97 crore from Power Grid Corporation of India.

KEC International’s net profit rose 36.9% to Rs 52.30 crore on 27.6% growth in net sales to Rs 708.91 crore in Q3 December 2007 over Q3 December 2006.

KEC's operations range from design, manufacture, supply and construction of turnkey projects of power transmission lines to execution of railway electrification projects, setting up sub-stations and power distribution networks, optical fibre cable (OPGW) installations, turnkey telecom infrastructure services and maintenance of power transmission lines. The company also undertakes rural electrification projects.

Steel Strips Wheels wins a repeat export order from KROMAG KFG-Austria

Steel Strips Wheels dropped 2.02% to Rs 170 at 12:41 IST on BSE after the company said it has received a repeat export order from KROMAG KFG-Austria, for the supply of 25,200 car wheel rims.

The stock hit a high of Rs 173.35 and a low of Rs 168.20 so far during the day. The stock had a 52-week high of Rs 256.25 on 2 January 2008 and a 52-week low of Rs 126.10 on 19 March 2008.

The company’s current equity is Rs 12.56 crore. Face value per share is Rs 10.

The current price of Rs 170 discounts its Q4 March 2008 EPS of Rs 18.25, by a PE multiple of 9.32.

Steel Strips Wheels’ net profit rose 29.9% to Rs 5.73 crore on 34.9% growth in net sales to Rs 73.31 crore on Q4 March 2008 over Q4 March 2007.

On 2 April 2008, Steel Strips Wheels bagged an export order worth Rs 110 crore from Renault, France for supply of one million steel wheel rims over five years.

In January 2008, the company bagged an export order worth Rs 75 crore from PSA Peugeot Citroen, France for supplying 13.75 lakh steel wheel rims.

The company is engaged in manufacturing wheel rims. The company caters largely to the two-wheeler industry.

Strides Arcolab in demand as promoter exudes confidence

Strides Arcolab advanced 3.63% to Rs 194 at 12:21 IST on BSE after promoters mopped up a little over 4% of the company’s equity by open market purchases in recent weeks.

The stock hit a high of Rs 196.40 and a low of Rs 187 so far during the day. The stock had a 52-week high of Rs 372 on 5 June 2007 and a 52-week low of Rs 120 on 22 January 2008.

The company’s current equity is Rs 39 crore. Face value per share is Rs 10.

With the latest stake hike, promoters have increased their holding to over 21%. Promoters held 18.82% stake in the company with total foreign holding being 68.60% as at end December 2007.

Strides Arcolab reported net loss of Rs 133.40 crore in Q4 December 2007 as compared to net profit of Rs 12.97 crore in Q4 December 2006. Net sales fell 41.4% to Rs 75.76 crore in Q4 December 2007 over Q4 December 2006.

The Bangalore-headquartered Strides Arcolab is a significant player in soft gelatin capsules and steriles. It manufactures ethical pharmaceutical products, over the counter (OTC) products and nutraceuticals. It performs its activities through two segments, pharma and contract research and manufacturing (CRAM).

Motilal Oswal Financial Services Stock split proposal

Motilal Oswal Financial Services jumped 5.71% to Rs 695.05 at 10:18 IST on BSE after the company scheduled a board meet on 21 April 2008 to consider stock split proposal.

Motilal Oswal Financial Services (MOFSL) scrip had scaled a 52-week high of Rs 2270 on 4 January 2008. The scrip had touched a 52-week low of Rs 515 on 24 March 2008.

The company’s current equity is Rs 14.20 crore. Face value per share is Rs 5.

MOFSL reported 268.20% jump in net profit to Rs 4.86 crore on a 255.50% rise in total income to Rs 11.66 crore in Q3 December 2007 over Q3 December 2006.

MOFSL and its subsidiaries offer a diversified range of financial products and services such as retail wealth management including securities and commodities broking, portfolio management services, institutional broking, investment banking services, and venture capital management and advisory.

Surana Telecom rings on buy back plan

Surana Telecom jumped 19.96% to Rs 32.75 at 12:11 IST on BSE after the company said it has scheduled a board meet on 22 April 2008 to consider buy back of equity shares.

The stock hit a high of Rs 32.75 and a low of Rs 27.80 so far during the day. The stock had a 52-week high of Rs 52.50 on 1 January 2008 and a 52-week low of Rs 20.75 on 24 March 2008.

The company’s current equity is Rs 11.30 crore. Face value per share is Rs 5.

The current price of Rs 32.75 discounts its Q3 December 2007 EPS of Rs 4.11, by a PE multiple of 7.97.

Surana Telecom’s net profit declined 7.9% to Rs 2.32 crore on 26.5% fall in net sales to Rs 15.37 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing heat-shrinkable jointing kits, cable splicing/filling compounds, jelly filled telecommunication cables, wire connectors, end caps, modular connectors and high-density polyethylene (HDPE) pipe.

Bhagyanagar India soars on buy back proposal

Bhagyanagar India advanced 13.78% to Rs 44.60 at 11:48 IST on BSE after the company said it has scheduled a board meet on 22 April 2008 to consider buy back of equity shares.

The stock hit a high of Rs 44.95 and a low of Rs 39 so far during the day. The stock had a 52-week high of Rs 79.50 on 2 January 2008 and a 52-week low of Rs 35 on 17 October 2007.

The company’s current equity is Rs 14.90 crore. Face value per share is Rs 2.

The current price of Rs 44.60 discounts its Q3 December 2007 EPS of Rs 5.04, by a PE multiple of 8.85.

Bhagyanagar India’s net profit rose 36.3% to Rs 9.38 crore on 36.8% growth to Rs 64.76 crore in Q3 December 2007 over Q3 December 2006.

Bhagyanagar India is a part of the Surana group, is engaged in the business of metals, cables, compounds, real estate and wind power.

Reliance Power Fund raising plan

Reliance Power gained 2.85% to Rs 372.15 at 10:47 IST on BSE on reports the Reserve Bank of India has approved the company’s proposal to raise about Rs 8,000 crore or $2 billion for its Sasan ultra mega power project.

The company’s current equity is Rs 2259.82 crore. Face value per share is Rs 10.

This could be one of the first mega External Commercial Borrowing (ECB) clearances to have come through after restrictions were imposed on ECBs. Normally, a company can borrow only up to $500 million for a single project through the automatic route, a move Reserve Bank of India (RBI) had taken to restrict flow of foreign capital that was having an impact on the rupee and inflation. The restrictions were particularly with regard to projects where the money was brought in instead of being spend on project imports. However reports added that the finance ministry has asked the RBI to treat the Sasan project as a special case considering its role in the country’s infrastructure.

Reliance Power would bring the ECB amount either through China or Korea as the company wants to source equipment through these countries. Sasan Power, a wholly-owned subsidiary of Reliance Power, would start placing equipment supply and engineering, procurement and construction orders for the project once the funding is in place by the May 2008. Sasan Ultra Mega Power Project (UMPP) is the country’s largest domestic coal-based power project at a single location in Madhya Pradesh. The project has the lowest levelised tariff of Rs 1.196 per unit.

In a meeting held on 25 February 2008, Reliance Power's board of directors approved 3:5 (3 bonus shares for every 5 shares held) bonus issue to all shareholders, excluding the promoter group comprising of Reliance Energy and the Anil Dhirubhai Ambani Group (ADAG).

In a related development, Anil Ambani, Chairman, Reliance ADAG simultaneously announced a voluntary contribution of 2.6% of his shareholding in Reliance Power to Reliance Energy, to prevent Reliance Energy from any dilution of its existing 45% stake in Reliance Power, as a result of the bonus issue.

Following bonus issue and personal stake transfer by Anil Ambani, the cost of acquisition of Reliance Power stock will come down by 40% for retail shareholders to Rs 269 per share from issue price of Rs 430 per share. In the same way, for other investors the acquisition cost will be reduced by 37% to Rs 281, from issue price of Rs 450.

Following this bonus issue, Anil Ambani's stake will come down to 40% from the present 45%. Reliance Energy's shareholding remains unchanged at 45% while public shareholding will increase by 5% to 15%.

Reliance Power is developing 13 power generation projects with a capacity of 28,200 megawatt (MW).

Grasim Industries slips

Grasim Industries slipped 0.86% to Rs 2528.60 at 10:14 IST on BSE even as the company said it has increased its stake from 25% to 45% in AV Cell Inc, a joint venture company in Canada for a total consideration of around Canadian dollar 6 million.

The stock hit a high of Rs 2550 and a low of Rs 2500 so far during the day. The stock had a 52-week high of Rs 4074 on 29 October 2007 and a 52-week low of Rs 2185 on 12 April 2007.

The company’s current equity is Rs 91.67 crore. Face value per share is Rs 10.

The current price of Rs 2528.60 discounts its Q3 December 2007 EPS of Rs 241.59, by a PE multiple of 10.47.

Following this, Aditya Birla Group's total stake in AV Cell has increased from 75% to 95%.

Grasim Industries’ net profit rose 34.6% to Rs 553.79 crore on 15.3% growth in net sales to Rs 2629.93 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and marketing cement, fibre and pulp, sponge iron, textile, chemicals and other.