Prism Cement slipped 5.07% to Rs 23.40 at 13:31 IST on BSE after the company reported 71% decline in net profit to Rs 15.01 crore on 15.73% fall in sales to Rs 162.71 crore in Q1 September 2008 over Q1 September 2007.
The company declared the results during market hours today, 7 October 2008.
The stock hit a high of Rs 25.45 and a low of Rs 21.40 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 24.35 on 6 October 2008.
The small-cap cement maker has an equity capital of Rs 298.25 crore. Face value per share is Rs 10.
The current price of Rs 23.40 discounts its Q4 June 2008 annualised EPS of Rs 8.18, by a PE multiple of 2.86.
P/E (As per New Results)=46.8
Prism Cement manufactures and sells clinker and portland cement. Its product is marketed under the brand name Prism Champion.
Tuesday, October 7, 2008
Country Club India setting record date for stock split
Country Club India (CMP=Rs 250)has fixed 22 October 2008 as the record date for 5-for-1 stock split.
The stock has a 52-week high of Rs 1110 on 3 January 2008 and a 52-week low of Rs 232 on 6 October 2008.
The company’s current equity is Rs 15.48 crore. Face value per share is Rs 10.
The current price of Rs 250 discounts Q1 June 2008 annualized EPS of Rs 49.79, a PE multiple of 5.02.
Country Club India’s net profit rose 46.2% to Rs 19.27 crore on 81.2% increase in net sales to Rs 103.14 crore in Q1 June 2008 over Q1 June 2007.
Country Club India is an entertainment and leisure conglomerate.
The stock has a 52-week high of Rs 1110 on 3 January 2008 and a 52-week low of Rs 232 on 6 October 2008.
The company’s current equity is Rs 15.48 crore. Face value per share is Rs 10.
The current price of Rs 250 discounts Q1 June 2008 annualized EPS of Rs 49.79, a PE multiple of 5.02.
Country Club India’s net profit rose 46.2% to Rs 19.27 crore on 81.2% increase in net sales to Rs 103.14 crore in Q1 June 2008 over Q1 June 2007.
Country Club India is an entertainment and leisure conglomerate.
Thermax bagged an order worth Rs 450 crore for setting up captive power plant in Andhra Pradesh.
Thermax (CMP=Rs 370)bagged an order worth Rs 450 crore for setting up a 60 megawatt captive power plant on turnkey basis in Andhra Pradesh.
The stock has a 52-week high of Rs 968.30 on 30 October 2007 and a 52-week low of Rs 330.50 on 2 July 2008.
The company’s current equity is Rs 23.83 crore. Face value per share is Rs 2.
The current price of Rs 370 discounts Q1 June 2008 annualized EPS of Rs 21.39, a PE multiple of 17.30.
In July 2008, the company bagged an order worth Rs 820 crore from a major refiner to supply pulverized coal fired boilers for its captive cogeneration plant.
Thermax’s net profit rose 13.7% to Rs 63.71 crore on 7.6% increase in net sales to Rs 716.97 crore in Q1 June 2008 over Q1 June 2007.
The company manufactures and distributes industrial equipment. The group operates in two segments, energy and environment.
The stock has a 52-week high of Rs 968.30 on 30 October 2007 and a 52-week low of Rs 330.50 on 2 July 2008.
The company’s current equity is Rs 23.83 crore. Face value per share is Rs 2.
The current price of Rs 370 discounts Q1 June 2008 annualized EPS of Rs 21.39, a PE multiple of 17.30.
In July 2008, the company bagged an order worth Rs 820 crore from a major refiner to supply pulverized coal fired boilers for its captive cogeneration plant.
Thermax’s net profit rose 13.7% to Rs 63.71 crore on 7.6% increase in net sales to Rs 716.97 crore in Q1 June 2008 over Q1 June 2007.
The company manufactures and distributes industrial equipment. The group operates in two segments, energy and environment.
Sensex in red, Nifty in green -Tuesday, October 07, 2008
After a promising start, key indices Tuesday fluctuated erratically through the day as stock prices moved in synchrony with news from the
global financial front. Sentiment remained weak since British banks were hammered on funding worries.
Bourses commenced on a strong footing following market regulator SEBI's move to lift curbs on foreign institutional investors imposed a year ago and a 50 basis points cut in cash reserve ratio by the Reserve Bank of India.
But the recovery was shortlived, with the Sensex and Nifty both hitting two-year lows in mid-afternoon trade.
Reports that the Royal Bank of Scotland and Barclays were in talks with the UK government for funding up to $79 billion rattled European markets, the tremors of which were felt in Indian markets as well.
Traders said a deepening global credit crisis and continued selling by foreign funds more than offset the central bank's liquidity-boosting measures.
"Indian markets are governed entirely by global cues, which is why, the might of the global liquidity crisis offset the positive measures taken by the regulatory authorities. Unless there is considerable improvement in sentiment in overseas markets, Indian markets will continue to remain volatile," said Hitesh Agarwal, head of research at Angel Broking.
Bombay Stock Exchange's Sensex ended 0.9 per cent or 106.46 points lower at 11,695.24 after swinging between a high of 12181.43 and low of 11501.85 intra-day.
On the other hand, National Stock Exchange's Nifty closed 0.12 per cent or 4.25 points up at 3606.60. The index fell to a low of 3537 from a high of 3732.65.
"The core issue is lack of liquidity and conviction in our market. There is hardly any value buying after the market falls. Unless things change decisively on the overseas front, one cannot be convinced of any upmove," said independent analyst Sumeet Rohra.
Through the volatility, oil & gas shares put up a good show as crude oil prices continued to drop. Most bank stocks surrendered early gains to end weaker. ICICI Bank ended down 1.1 per cent and HDFC Bank fell 6.2 per cent.
Technology companies Infosys, Satyam Computer, Wipro and Tata Consultancy Services fell between 1 and 7 per cent after British bank shares plummeted on funding worries, as the firms count major financial firms amongst their top clients.
Midcaps and smallcaps were relatively more affected. BSE Midcap and Smallcap indices ended down 2 per cent and 2.17 per cent respectively.
Market breadth remained weak. On BSE, 1802 declines outnumbered 809 advances.
Weighing on the indices were Tata Consultancy Services (-7.02%), Larsen & Toubro (-6.94%), Sterlite Industries (-6.35%), HDFC Bank (6.17%) and Mahindra & Mahindra (-5.84%)
NTPC (4.27%), Ranbaxy Laboratories (3.88%), BHEL (3.26%), Bharti Airtel (2.66%) and Reliance Industries (2.04%) posted decent gains.
Asian markets recovered from the day's lows helped by bargain hunting, but investors were jittery on concerns that the fallout from the escalating credit crisis will drag the global economy into recession.
Among European markets, the FTSE was up 1.8 per cent, DAX 30 rose 0.41 per cent and CAC 40 added 1.98 per cent.
global financial front. Sentiment remained weak since British banks were hammered on funding worries.
Bourses commenced on a strong footing following market regulator SEBI's move to lift curbs on foreign institutional investors imposed a year ago and a 50 basis points cut in cash reserve ratio by the Reserve Bank of India.
But the recovery was shortlived, with the Sensex and Nifty both hitting two-year lows in mid-afternoon trade.
Reports that the Royal Bank of Scotland and Barclays were in talks with the UK government for funding up to $79 billion rattled European markets, the tremors of which were felt in Indian markets as well.
Traders said a deepening global credit crisis and continued selling by foreign funds more than offset the central bank's liquidity-boosting measures.
"Indian markets are governed entirely by global cues, which is why, the might of the global liquidity crisis offset the positive measures taken by the regulatory authorities. Unless there is considerable improvement in sentiment in overseas markets, Indian markets will continue to remain volatile," said Hitesh Agarwal, head of research at Angel Broking.
Bombay Stock Exchange's Sensex ended 0.9 per cent or 106.46 points lower at 11,695.24 after swinging between a high of 12181.43 and low of 11501.85 intra-day.
On the other hand, National Stock Exchange's Nifty closed 0.12 per cent or 4.25 points up at 3606.60. The index fell to a low of 3537 from a high of 3732.65.
"The core issue is lack of liquidity and conviction in our market. There is hardly any value buying after the market falls. Unless things change decisively on the overseas front, one cannot be convinced of any upmove," said independent analyst Sumeet Rohra.
Through the volatility, oil & gas shares put up a good show as crude oil prices continued to drop. Most bank stocks surrendered early gains to end weaker. ICICI Bank ended down 1.1 per cent and HDFC Bank fell 6.2 per cent.
Technology companies Infosys, Satyam Computer, Wipro and Tata Consultancy Services fell between 1 and 7 per cent after British bank shares plummeted on funding worries, as the firms count major financial firms amongst their top clients.
Midcaps and smallcaps were relatively more affected. BSE Midcap and Smallcap indices ended down 2 per cent and 2.17 per cent respectively.
Market breadth remained weak. On BSE, 1802 declines outnumbered 809 advances.
Weighing on the indices were Tata Consultancy Services (-7.02%), Larsen & Toubro (-6.94%), Sterlite Industries (-6.35%), HDFC Bank (6.17%) and Mahindra & Mahindra (-5.84%)
NTPC (4.27%), Ranbaxy Laboratories (3.88%), BHEL (3.26%), Bharti Airtel (2.66%) and Reliance Industries (2.04%) posted decent gains.
Asian markets recovered from the day's lows helped by bargain hunting, but investors were jittery on concerns that the fallout from the escalating credit crisis will drag the global economy into recession.
Among European markets, the FTSE was up 1.8 per cent, DAX 30 rose 0.41 per cent and CAC 40 added 1.98 per cent.
Monday, October 6, 2008
RBI cuts CRR by 50 bps to 8.5%, effective October 11
MUMBAI: The Reserve Bank on Monday slashed by 0.50 per cent the rate of mandatory deposits that banks need to keep with it to ease the tight liquidity position, a move that may induce banks to lower commercial lending rates.
The new Cash Reserve Ratio (CRR) of 8.5 per cent will be effective from October 11 and would unlock about Rs 20,000 crore into the banking system, RBI said.
This is the first time in almost three years that the bank has relaxed its tight monetary policy stance that it had adopted to contain inflation.
The move, which comes in the backdrop of inflation easing below 12 per cent and outflow of foreign capital, is aimed at infusing more funds in the financial system.
BNP Paribas' 12-month Sensex target 9476
BNP Paribas' 12-month Sensex target 9476
MUMBAI: BNP Paribas' 12-month Sensex target is 9476 and this FII points out that the Indian market is likely to suffer the most from a withdrawal of liquidity.
BNP has put
Post- Market Commentary, Monday, October 06, 2008
Bloodshed continues; Sensex closes below 12,000
BSE 30-share Sensex lost 724.62 points or 5.78% to 11,801.70. The index shed 793.75 points at the day's low of 11,732.97, hit in late trade, its lowest level since 13 September 2006.
The S&P CNX Nifty was down 215.95 points or 5.66% to 3,602.35. Nifty hit a low of 3,581.60, its lowest level since 16 March 2007.
As per the provisional figures on BSE, the foreign institutional investors (FII)s sold shares worth Rs 1,169.33 crore while domestic funds bought shares worth Rs 661 crore today, 6 October 2008.
BNP Paribas France's biggest listed bank, today, 6 October 2008, said it was paying 14.5 billion euros ($20.1 billion) to take control of European financial group Fortis. Germany gave blanket bank deposit guarantee on Sunday, 5 October 2008, to prevent panic as officials clinched deals to rescue Germany's Hypo Real Estate -- after an initial bailout failed -- and recapitalize two other European banks.
In South Korea, banks were having trouble raising foreign currency funds and the government pledged to give banks access to the country's foreign exchange reserves, the world's sixth largest at nearly $240 billion.
With the end of third quarter of the calendar year 2008 on Tuesday, 30 September 2008, hedge fund are bracing for heavy redemption amid US financial sector crisis which has already spread to Europe. Investors in hedge funds are usually allowed to exit funds only on the final day of the financial quarter. Large-scale investor redemption in hedge funds may trigger further selling by foreign funds in India. Hedge funds mainly operate through the participatory notes route in India. However, there is no data available on the quantum of hedge funds’ investment in India.
The next major trigger for the market is Q2 September 2008 results. IT bellwether Infosys kickstarts the reporting season on 10 October 2008.
BSE 30-share Sensex lost 724.62 points or 5.78% to 11,801.70. The index shed 793.75 points at the day's low of 11,732.97, hit in late trade, its lowest level since 13 September 2006.
The S&P CNX Nifty was down 215.95 points or 5.66% to 3,602.35. Nifty hit a low of 3,581.60, its lowest level since 16 March 2007.
As per the provisional figures on BSE, the foreign institutional investors (FII)s sold shares worth Rs 1,169.33 crore while domestic funds bought shares worth Rs 661 crore today, 6 October 2008.
BNP Paribas France's biggest listed bank, today, 6 October 2008, said it was paying 14.5 billion euros ($20.1 billion) to take control of European financial group Fortis. Germany gave blanket bank deposit guarantee on Sunday, 5 October 2008, to prevent panic as officials clinched deals to rescue Germany's Hypo Real Estate -- after an initial bailout failed -- and recapitalize two other European banks.
In South Korea, banks were having trouble raising foreign currency funds and the government pledged to give banks access to the country's foreign exchange reserves, the world's sixth largest at nearly $240 billion.
With the end of third quarter of the calendar year 2008 on Tuesday, 30 September 2008, hedge fund are bracing for heavy redemption amid US financial sector crisis which has already spread to Europe. Investors in hedge funds are usually allowed to exit funds only on the final day of the financial quarter. Large-scale investor redemption in hedge funds may trigger further selling by foreign funds in India. Hedge funds mainly operate through the participatory notes route in India. However, there is no data available on the quantum of hedge funds’ investment in India.
The next major trigger for the market is Q2 September 2008 results. IT bellwether Infosys kickstarts the reporting season on 10 October 2008.
Global bailout package size nears $2 trillion
NEW DELHI: With financial institutions falling prey one after another to the global credit crisis, the bailout packages announced by various governments across the globe are inching towards two trillion-dollar mark -- an amount nearly double the size of Indian economy.
With the US Congress giving nod to $700 billion aid for troubled financial institutions in the country, the US government alone has announced a total package worth about 990 billion dollars.
Besides, a handful of European countries have already announced packages worth a similar amount in efforts to save their troubled financial entities.
There are expectations for more such instances of helping hands coming from the governments in Europe as the crisis is said to be fast spreading in the region after a full-blown blast in the US.
However, nothing of this sort is expected in India as the country and its financial institutions have remained mostly insulated from any direct impact of the crisis.
Still, the collective bailout packages in the US and Europe, currently at about 1.8 trillion dollars, could soon be double the size of one trillion-dollar Indian economy.
India's GDP is estimated at Rs 46,93,602 crore for the latest fiscal 2007-08, which stands at just over USD one trillion based on the current exchange rate of about Rs 46.8 to a dollar.
From America to Europe, the deepening financial turmoil has seen the fall of big names, especially in the banking industry, such as the bankruptcy of Lehman Brothers, firesale of Merrill Lynch to Bank of America and the extension of 85 billion-dollar lifeline to AIG.
Readers Opinions
Global bailout package size nears $2 trillion
danendra jain , Agartala , says: I am of the opinion that financial crisis in USA and other parts of the world will definitely adversely add fuel to fire in already burning Indian banking system. Banks in India are building castles in the air by hiding the malady already crept into and eating away the intrinsic worth of banks just like cancer creates erosion in the body. Our banks show profit and growth by cooking figures and concealing real NPA (Non performing assets). Auditors, (either statutory or RBI) are simply certifying the books in return of gifts in cash and kind they get from bank managers. If banks truly and honestly classify their asset portfolio, there is no doubt that all PSU banks will find that their capital has already been lost and public money is in danger. How long RBI and Finance Minister will build pressure on them and force bankers to project and present rosy picture to earn false and fabricated image before international community. Days are not far when truth will be exposed and Indian banks will face more acute and devastating crisis.
[5 Oct, 2008 2124hrs IST]
via:Economic Times
With the US Congress giving nod to $700 billion aid for troubled financial institutions in the country, the US government alone has announced a total package worth about 990 billion dollars.
Besides, a handful of European countries have already announced packages worth a similar amount in efforts to save their troubled financial entities.
There are expectations for more such instances of helping hands coming from the governments in Europe as the crisis is said to be fast spreading in the region after a full-blown blast in the US.
However, nothing of this sort is expected in India as the country and its financial institutions have remained mostly insulated from any direct impact of the crisis.
Still, the collective bailout packages in the US and Europe, currently at about 1.8 trillion dollars, could soon be double the size of one trillion-dollar Indian economy.
India's GDP is estimated at Rs 46,93,602 crore for the latest fiscal 2007-08, which stands at just over USD one trillion based on the current exchange rate of about Rs 46.8 to a dollar.
From America to Europe, the deepening financial turmoil has seen the fall of big names, especially in the banking industry, such as the bankruptcy of Lehman Brothers, firesale of Merrill Lynch to Bank of America and the extension of 85 billion-dollar lifeline to AIG.
Readers Opinions
Global bailout package size nears $2 trillion
danendra jain , Agartala , says: I am of the opinion that financial crisis in USA and other parts of the world will definitely adversely add fuel to fire in already burning Indian banking system. Banks in India are building castles in the air by hiding the malady already crept into and eating away the intrinsic worth of banks just like cancer creates erosion in the body. Our banks show profit and growth by cooking figures and concealing real NPA (Non performing assets). Auditors, (either statutory or RBI) are simply certifying the books in return of gifts in cash and kind they get from bank managers. If banks truly and honestly classify their asset portfolio, there is no doubt that all PSU banks will find that their capital has already been lost and public money is in danger. How long RBI and Finance Minister will build pressure on them and force bankers to project and present rosy picture to earn false and fabricated image before international community. Days are not far when truth will be exposed and Indian banks will face more acute and devastating crisis.
[5 Oct, 2008 2124hrs IST]
via:Economic Times
Saturday, October 4, 2008
Bailout would further weaken US economy
4 Oct, 2008, 1851 hrs IST,Joseph E Stiglitz,
It doesn’t take a genius to figure out that the United States’ financial system - indeed, global finance - is in a mess. And now, with the US House of Representatives seeking modifications in the Bush administration’s proposed $700 billion bailout plan, it is also obvious that there is no consensus on how to fix it.
The problems in the US economy and financial system have been apparent for years. But that didn’t prevent America’s leaders from turning to the same people who helped create the mess, who didn’t see the problems until they brought us to the brink of another Great Depression, and who have been veering from one bail-out to another, to rescue us.
As global markets plummet, the rescue plan will almost certainly be put to another vote in Congress. They may rescue Wall Street, but what about the economy? What about taxpayers, already beleaguered by unprecedented deficits, and with bills still to pay for decaying infrastructure and two wars? In such circumstances, can any bailout plan work?
To be sure, the rescue plan that was just defeated was far better than what the Bush administration originally proposed.
But its basic approach remained critically flawed. First, it relied - once again - on trickle-down economics: somehow, throwing enough money at Wall Street would trickle down to Main Street, helping ordinary workers and homeowners. Trickle-down economics almost never works, and it is no more likely to work this time.
Moreover, the plan assumed that the fundamental problem was one of confidence. That is no doubt part of the problem; but the underlying problem is that financial markets made some very bad loans. There was a housing bubble, and loans were made on the basis of inflated prices.
That bubble has burst. House prices probably will fall further, so there will be more foreclosures, and no amount of talking up the market is going to change that. The bad loans, in turn, have created massive holes in banks’ balance sheets, which have to be repaired. Any government bailout that pays fair value for these assets will do nothing to repair that hole. On the contrary, it would be like providing massive blood transfusions to a patient suffering from vast internal haemorrhaging.
Even if a bailout plan were implemented quickly - which appears increasingly unlikely - there would be some credit contraction. The US economy has been sustained by a consumption boom fuelled by excessive borrowing, and that will be curtailed. States and localities are cutting back expenditures. Household balance sheets are weaker. An economic slowdown will exacerbate all our financial problems.
We could do more with less money. The holes in financial institutions’ balance sheets should be filled in a transparent way. The Scandinavian co
untries showed the way two decades ago. Warren Buffet showed another way, in providing equity to Goldman Sachs. By issuing preferred shares with warrants (options), one reduces the public’s downside risk and ensures that they participate in some of the upside potential.
This approach is not only proven, but it also provides both the incentives and wherewithal needed for lending to resume. It avoids the hopeless task of trying to value millions of complex mortgages and the even more complex financial products in which they are embedded, and it deals with the “lemons” problem - the government gets stuck with the worst or most overpriced assets. Finally, it can be done far more quickly.
At the same time, several steps can be taken to reduce foreclosures. First, housing can be made more affordable for poor and middle-income Americans by converting the mortgage deduction into a cashable tax credit. The government effectively pays 50% of the mortgage interest and real estate taxes for upper-income Americans, yet does nothing for the poor. Second, bankruptcy reform is needed to allow homeowners to write down the value of their homes and stay in their houses. Third, government could assume part of a mortgage, taking advantage of its lower borrowing costs.
By contrast, US treasury secretary Henry Paulson’s approach is another example of the kind of shell games that got America into its mess. Investment banks and credit rating agencies believed in financial alchemy - the notion that significant value could be created by slicing and dicing securities. The new view is that real value can be created by un-slicing and un-dicing - pulling these assets out of the financial system and turning them over to the government. But that requires overpaying for the assets, benefiting only the banks.
In the end, there is a high likelihood that if such a plan is ultimately adopted, American taxpayers will be left on the hook. In environmental economics, there is a basic principle, called ‘the polluter pays principle’ . It is a matter of both equity and efficiency. Wall Street has polluted the economy with toxic mortgages. It should pay for the cleanup.
There is a growing consensus among economists that any bailout based on Paulson’s plan won’t work. If so, the huge increase in the national debt and the realisation that even $700 billion is not enough to rescue the US economy will erode confidence further and aggravate its weakness.
But it is impossible for politicians to do nothing in such a crisis. So we may have to pray that an agreement crafted with the toxic mix of special interests, misguided economics, and right-wing ideologies that produced the crisis can somehow produce a rescue plan that works - or whose failure doesn’t do too much damage.
Getting things right - including a new regulatory system that reduces the likelihood that such a crisis will recur - is one of the many tasks to be left to the next administration .
(The author is professor of economics at Columbia University, and recipient of the 2001 Nobel Prize in Economics)
Via:E.T
It doesn’t take a genius to figure out that the United States’ financial system - indeed, global finance - is in a mess. And now, with the US House of Representatives seeking modifications in the Bush administration’s proposed $700 billion bailout plan, it is also obvious that there is no consensus on how to fix it.
The problems in the US economy and financial system have been apparent for years. But that didn’t prevent America’s leaders from turning to the same people who helped create the mess, who didn’t see the problems until they brought us to the brink of another Great Depression, and who have been veering from one bail-out to another, to rescue us.
As global markets plummet, the rescue plan will almost certainly be put to another vote in Congress. They may rescue Wall Street, but what about the economy? What about taxpayers, already beleaguered by unprecedented deficits, and with bills still to pay for decaying infrastructure and two wars? In such circumstances, can any bailout plan work?
To be sure, the rescue plan that was just defeated was far better than what the Bush administration originally proposed.
But its basic approach remained critically flawed. First, it relied - once again - on trickle-down economics: somehow, throwing enough money at Wall Street would trickle down to Main Street, helping ordinary workers and homeowners. Trickle-down economics almost never works, and it is no more likely to work this time.
Moreover, the plan assumed that the fundamental problem was one of confidence. That is no doubt part of the problem; but the underlying problem is that financial markets made some very bad loans. There was a housing bubble, and loans were made on the basis of inflated prices.
That bubble has burst. House prices probably will fall further, so there will be more foreclosures, and no amount of talking up the market is going to change that. The bad loans, in turn, have created massive holes in banks’ balance sheets, which have to be repaired. Any government bailout that pays fair value for these assets will do nothing to repair that hole. On the contrary, it would be like providing massive blood transfusions to a patient suffering from vast internal haemorrhaging.
Even if a bailout plan were implemented quickly - which appears increasingly unlikely - there would be some credit contraction. The US economy has been sustained by a consumption boom fuelled by excessive borrowing, and that will be curtailed. States and localities are cutting back expenditures. Household balance sheets are weaker. An economic slowdown will exacerbate all our financial problems.
We could do more with less money. The holes in financial institutions’ balance sheets should be filled in a transparent way. The Scandinavian co
untries showed the way two decades ago. Warren Buffet showed another way, in providing equity to Goldman Sachs. By issuing preferred shares with warrants (options), one reduces the public’s downside risk and ensures that they participate in some of the upside potential.
This approach is not only proven, but it also provides both the incentives and wherewithal needed for lending to resume. It avoids the hopeless task of trying to value millions of complex mortgages and the even more complex financial products in which they are embedded, and it deals with the “lemons” problem - the government gets stuck with the worst or most overpriced assets. Finally, it can be done far more quickly.
At the same time, several steps can be taken to reduce foreclosures. First, housing can be made more affordable for poor and middle-income Americans by converting the mortgage deduction into a cashable tax credit. The government effectively pays 50% of the mortgage interest and real estate taxes for upper-income Americans, yet does nothing for the poor. Second, bankruptcy reform is needed to allow homeowners to write down the value of their homes and stay in their houses. Third, government could assume part of a mortgage, taking advantage of its lower borrowing costs.
By contrast, US treasury secretary Henry Paulson’s approach is another example of the kind of shell games that got America into its mess. Investment banks and credit rating agencies believed in financial alchemy - the notion that significant value could be created by slicing and dicing securities. The new view is that real value can be created by un-slicing and un-dicing - pulling these assets out of the financial system and turning them over to the government. But that requires overpaying for the assets, benefiting only the banks.
In the end, there is a high likelihood that if such a plan is ultimately adopted, American taxpayers will be left on the hook. In environmental economics, there is a basic principle, called ‘the polluter pays principle’ . It is a matter of both equity and efficiency. Wall Street has polluted the economy with toxic mortgages. It should pay for the cleanup.
There is a growing consensus among economists that any bailout based on Paulson’s plan won’t work. If so, the huge increase in the national debt and the realisation that even $700 billion is not enough to rescue the US economy will erode confidence further and aggravate its weakness.
But it is impossible for politicians to do nothing in such a crisis. So we may have to pray that an agreement crafted with the toxic mix of special interests, misguided economics, and right-wing ideologies that produced the crisis can somehow produce a rescue plan that works - or whose failure doesn’t do too much damage.
Getting things right - including a new regulatory system that reduces the likelihood that such a crisis will recur - is one of the many tasks to be left to the next administration .
(The author is professor of economics at Columbia University, and recipient of the 2001 Nobel Prize in Economics)
Via:E.T
Ambuja Cements drops
Ambuja Cements declined 1.27% to Rs 77.80 even as the company posted 8.4% growth in production to 13.77 lakh tonnes in September 2008 over September 2007.
The stock hit a high of Rs 78.85 and a low of Rs 76.55 during the day. The stock has a 52-week high of Rs 160.90 on 4 December 2007 and a low of Rs 68.70 on 3 July 2008.
The company’s current equity is Rs 304.52 crore. Face value per share is Rs 2.
The current price of Rs 77.80 discounts Q2 June 2008 annualized EPS of Rs 15.16, a PE multiple of 5.13.
The company’s shipments rose 6.2% to 13.68 lakh tonnes in September 2008 over September 2007.
Ambuja Cements’ net profit declined 32.50% to Rs 577.02 crore on 8.20% increase in net sales to Rs 1569.77 crore in Q2 June 2008 over Q2 June 2007.
Ambuja Cements is engaged in manufacturing and marketing cement and clinker for both domestic and exports markets. It is north India’s largest cement maker in terms of sales.
The stock hit a high of Rs 78.85 and a low of Rs 76.55 during the day. The stock has a 52-week high of Rs 160.90 on 4 December 2007 and a low of Rs 68.70 on 3 July 2008.
The company’s current equity is Rs 304.52 crore. Face value per share is Rs 2.
The current price of Rs 77.80 discounts Q2 June 2008 annualized EPS of Rs 15.16, a PE multiple of 5.13.
The company’s shipments rose 6.2% to 13.68 lakh tonnes in September 2008 over September 2007.
Ambuja Cements’ net profit declined 32.50% to Rs 577.02 crore on 8.20% increase in net sales to Rs 1569.77 crore in Q2 June 2008 over Q2 June 2007.
Ambuja Cements is engaged in manufacturing and marketing cement and clinker for both domestic and exports markets. It is north India’s largest cement maker in terms of sales.
Aban Offshore plunged14.5% to Rs 1744.55
Aban Offshore plunged14.5% to Rs 1744.55 even as the company said on Friday, 3 October 2008, it has received an order worth Rs 1133 crore for multiple well-drilling program for four years.
The stock hit a high of Rs 2040.45 and a low of Rs 1710 during the day. The stock has a 52-week high of Rs 5555 on 20 November 2008 and a low of Rs 1850 on 30 September 2008.
The company’s current equity is Rs 7.56 crore. Face value per share is Rs 2.
The current price of Rs 1900 discounts Q1 June 2008 annualized EPS of Rs 75.67, a PE multiple of 25.12.
On 26 September 2008, Aban Offshore signed a contract with Husky Oil China for multiple well-drilling programmes for 180 days worth Rs 178 crore.
On 16 September 2008, Aban Offshore secured a five-year contract worth Rs 3150 crore for the deployment of its semi-submersible rig Aban Pearl.
Aban Offshore’s net profit surged 152% to Rs 71.51 crore on a 93.5% increase in net sales to Rs 246.95 crore in Q1 June 2008 over Q1 June 2007.
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.
The stock hit a high of Rs 2040.45 and a low of Rs 1710 during the day. The stock has a 52-week high of Rs 5555 on 20 November 2008 and a low of Rs 1850 on 30 September 2008.
The company’s current equity is Rs 7.56 crore. Face value per share is Rs 2.
The current price of Rs 1900 discounts Q1 June 2008 annualized EPS of Rs 75.67, a PE multiple of 25.12.
On 26 September 2008, Aban Offshore signed a contract with Husky Oil China for multiple well-drilling programmes for 180 days worth Rs 178 crore.
On 16 September 2008, Aban Offshore secured a five-year contract worth Rs 3150 crore for the deployment of its semi-submersible rig Aban Pearl.
Aban Offshore’s net profit surged 152% to Rs 71.51 crore on a 93.5% increase in net sales to Rs 246.95 crore in Q1 June 2008 over Q1 June 2007.
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.
Tata Motors falls below rights issue price
Tata Motors (CMP=Rs 328.60) posted 2.7% growth in sales to 49,647 units in September 2008 over September 2007.
The stock hit low of Rs 326 so far during the day, which is 52-week low for the counter. The stock has a 52-week high of Rs 813.48 on 12 October 2007.
The company's current equity is Rs 23.89 crore. Face value per share is Rs 10.
The current price of Rs 328.60 discounts Q1 June 2008 annualized EPS of Rs 33.82, a PE multiple of 9.72.
Tata Motors' commercial vehicles sales rose 6% to 28,648 units in September 2008 over September 2007. Sales of passenger vehicles declined 2.5% to 16,586 units in September 2008 over September 2007.
Tata Motors' rights issue of ordinary and Class A shares priced at Rs 340 and Rs 305 respectively, opened for subscription on 29 September 2008. The issue will close on 20 October 2008. The rights issue is for part funding its $2.3 billion Jaguar-Land Rover deal.
Tata Motors' net profit fell 30.1% to Rs 326.11 crore on a 14.40% increase in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007.
Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.
The stock hit low of Rs 326 so far during the day, which is 52-week low for the counter. The stock has a 52-week high of Rs 813.48 on 12 October 2007.
The company's current equity is Rs 23.89 crore. Face value per share is Rs 10.
The current price of Rs 328.60 discounts Q1 June 2008 annualized EPS of Rs 33.82, a PE multiple of 9.72.
Tata Motors' commercial vehicles sales rose 6% to 28,648 units in September 2008 over September 2007. Sales of passenger vehicles declined 2.5% to 16,586 units in September 2008 over September 2007.
Tata Motors' rights issue of ordinary and Class A shares priced at Rs 340 and Rs 305 respectively, opened for subscription on 29 September 2008. The issue will close on 20 October 2008. The rights issue is for part funding its $2.3 billion Jaguar-Land Rover deal.
Tata Motors' net profit fell 30.1% to Rs 326.11 crore on a 14.40% increase in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007.
Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.
Tata Steel Overseas Investments
Tata Steel (CMP=Rs:393)said on Wednesday, 1 October 2008, its Singapore-based unit has agreed to buy 19.9% stake in Canadian miner New Millennium Capital Corporation for $22.6 million.
The stock has a 52-week high of Rs 969.80 on 29 October 2007 and a 52-week low of Rs 413.10 on 30 September 2008.
The company's current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 432 discounts Q1 June 2008 annualized EPS of Rs 81.47, a PE multiple of 5.30.
Tata Steel has an option to acquire 80% in a joint venture that will develop New Millennium's Direct Shipping Ore (DSO) project, and also hold rights to the entire iron ore output from the project, which is expected to have annual production of four million tonnes from 2010. The DSO project is estimated to hold reserves in excess of 100 million tonnes of direct shipping quality ore, Tata Steel said.
Tata Steel will also have exclusivity until June 2009 to negotiate a transaction for New Millennium's LabMag iron ore property, which holds 3.5 billion tonnes of proven and probable mineral reserves. Tata Steel holds a right-of-first refusal in future equity placement by New Millennium and a pre-emptive right for other equity offers by the company.
Recently, Tata Steel through its indirect subsidiary TS Global Minerals Holdings bought a 7.3% stake in Riversdale Mining, which has a coking coal project in Mozambique.
In August 2008 Tata Steel announced that its overseas unit formed a joint venture with Vietnam Steel Corporation and Vietnam Cement Industries Corporation for a steel complex in Ha Tinh province in Vietnam.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
The stock has a 52-week high of Rs 969.80 on 29 October 2007 and a 52-week low of Rs 413.10 on 30 September 2008.
The company's current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 432 discounts Q1 June 2008 annualized EPS of Rs 81.47, a PE multiple of 5.30.
Tata Steel has an option to acquire 80% in a joint venture that will develop New Millennium's Direct Shipping Ore (DSO) project, and also hold rights to the entire iron ore output from the project, which is expected to have annual production of four million tonnes from 2010. The DSO project is estimated to hold reserves in excess of 100 million tonnes of direct shipping quality ore, Tata Steel said.
Tata Steel will also have exclusivity until June 2009 to negotiate a transaction for New Millennium's LabMag iron ore property, which holds 3.5 billion tonnes of proven and probable mineral reserves. Tata Steel holds a right-of-first refusal in future equity placement by New Millennium and a pre-emptive right for other equity offers by the company.
Recently, Tata Steel through its indirect subsidiary TS Global Minerals Holdings bought a 7.3% stake in Riversdale Mining, which has a coking coal project in Mozambique.
In August 2008 Tata Steel announced that its overseas unit formed a joint venture with Vietnam Steel Corporation and Vietnam Cement Industries Corporation for a steel complex in Ha Tinh province in Vietnam.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
Thursday, October 2, 2008
Sensex may hit 10500 levels: Ramesh Damani
Published on Tue, Sep 30, 2008 at 09:38 , Updated at Wed, Oct 01, 2008 at 10:13
Source : CNBC-TV18
Ramesh Damani, a member of BSE, said that this is a rare moment and extraordinary time in the capital markets. He added that this crisis is a once in 100-year event. He feels Indian markets have not yet seen bear market bottom as yet and sees the market ranging between12,000 and 13,000 levels. He expects a huge slowdown in growth and sees the Sensex slipping to 10,500.
Damani said, “Price corrections may be over in a few months but time corrections will not be regained.” He does not expect to see the Sensex at 20000 for a long time.
Source : CNBC-TV18
Ramesh Damani, a member of BSE, said that this is a rare moment and extraordinary time in the capital markets. He added that this crisis is a once in 100-year event. He feels Indian markets have not yet seen bear market bottom as yet and sees the market ranging between12,000 and 13,000 levels. He expects a huge slowdown in growth and sees the Sensex slipping to 10,500.
Damani said, “Price corrections may be over in a few months but time corrections will not be regained.” He does not expect to see the Sensex at 20000 for a long time.
US heading for sharp downturn: IMF
2 Oct, 2008, 2201 hrs IST, REUTERS
WASHINGTON: The United States will likely suffer a sharp economic downturn, or even recession, judging by the impact of similar banking crises around the globe over the past 30 years, the International Monetary Fund said on Thursday.
In new research, the IMF said the risk of recession is higher when financial turmoil is preceded by rising house prices and rapid expansion of credit, which was the case in the United States.
"The patterns of asset prices, aggregate credit and house borrowing in the United States during the current episode of financial stress appear similar to those of previous episodes that were followed by recessions," IMF research found.
After several years of a housing boom, the US economy has been shaken by a banking crisis that began with a spike in defaults among the riskiest mortgages and spread to Wall Street, marking the worst financial crisis since the Great Depression.
"It is now all too clear we are seeing the most dangerous shock to mature financial markets since the 1930s, posing a major threat to global growth," Charles Collyns, deputy director in the IMF's research department, told reporters.
The research, published in chapters of the IMF's bi-annual World Economic Outlook report, were compiled from 113 periods of financial stress in 17 advanced economies over 30 years.
The IMF compared the US turmoil to six banking-related crises that affected Finland, Norway, Sweden, Britain and the United States in the early 1990s, and Japan throughout that decade.
Half of these crises involved the banking sector and the remainder were in securities or foreign exchange markets.
Based on this metric, the current episode of financial stress ranks as one of the most intense for the United States and one of the most wide spread affecting virtually all countries in the sample," the IMF said.
It said, however, not all financial crises led to economic slowdowns or recessions, which occurred in half of the cases studied.
It said when a slowdown or recession follows a period of financial stress, and especially when the stress is in the banking sector, typically it is more severe, the IMF said.
In particular, slowdowns or recessions preceded by bank-related stress tend to involve two to three times greater cumulative output losses and tend to last two to four times as long, the IMF added.
Restoring banks' capital bases is critical to alleviate economic downturns, the IMF said.
"To limit the fallout on the real economy it is therefore of paramount importance that the damage to the banking systems in the United States and Europe is swiftly contained by far-reaching and comprehensive measures," Collyns added.
SLOWDOWN OR RECESSION?
What determines whether a banking crisis will lead to economic downturn or recession?
The fund said that depends on how much house prices and credit had risen before the onset of the crisis.
"While greater reliance on borrowing by non-financial corporations is associated with a sharper downturn in the aftermath of financial stress, the size of financial imbalances in the household sector is crucial in determining whether the downturn will turn into a recession," it said.
Still, the IMF said the severity of the downturn could be cushioned by such factors as the strength of corporate balance sheets when the crisis began and the aggressive monetary easing by the US Federal Reserve.
In the euro area, the relatively strong balance sheets of households offer some protection against a sharp down turn.
via:E.T
WASHINGTON: The United States will likely suffer a sharp economic downturn, or even recession, judging by the impact of similar banking crises around the globe over the past 30 years, the International Monetary Fund said on Thursday.
In new research, the IMF said the risk of recession is higher when financial turmoil is preceded by rising house prices and rapid expansion of credit, which was the case in the United States.
"The patterns of asset prices, aggregate credit and house borrowing in the United States during the current episode of financial stress appear similar to those of previous episodes that were followed by recessions," IMF research found.
After several years of a housing boom, the US economy has been shaken by a banking crisis that began with a spike in defaults among the riskiest mortgages and spread to Wall Street, marking the worst financial crisis since the Great Depression.
"It is now all too clear we are seeing the most dangerous shock to mature financial markets since the 1930s, posing a major threat to global growth," Charles Collyns, deputy director in the IMF's research department, told reporters.
The research, published in chapters of the IMF's bi-annual World Economic Outlook report, were compiled from 113 periods of financial stress in 17 advanced economies over 30 years.
The IMF compared the US turmoil to six banking-related crises that affected Finland, Norway, Sweden, Britain and the United States in the early 1990s, and Japan throughout that decade.
Half of these crises involved the banking sector and the remainder were in securities or foreign exchange markets.
Based on this metric, the current episode of financial stress ranks as one of the most intense for the United States and one of the most wide spread affecting virtually all countries in the sample," the IMF said.
It said, however, not all financial crises led to economic slowdowns or recessions, which occurred in half of the cases studied.
It said when a slowdown or recession follows a period of financial stress, and especially when the stress is in the banking sector, typically it is more severe, the IMF said.
In particular, slowdowns or recessions preceded by bank-related stress tend to involve two to three times greater cumulative output losses and tend to last two to four times as long, the IMF added.
Restoring banks' capital bases is critical to alleviate economic downturns, the IMF said.
"To limit the fallout on the real economy it is therefore of paramount importance that the damage to the banking systems in the United States and Europe is swiftly contained by far-reaching and comprehensive measures," Collyns added.
SLOWDOWN OR RECESSION?
What determines whether a banking crisis will lead to economic downturn or recession?
The fund said that depends on how much house prices and credit had risen before the onset of the crisis.
"While greater reliance on borrowing by non-financial corporations is associated with a sharper downturn in the aftermath of financial stress, the size of financial imbalances in the household sector is crucial in determining whether the downturn will turn into a recession," it said.
Still, the IMF said the severity of the downturn could be cushioned by such factors as the strength of corporate balance sheets when the crisis began and the aggressive monetary easing by the US Federal Reserve.
In the euro area, the relatively strong balance sheets of households offer some protection against a sharp down turn.
via:E.T
Now, Playboy looks for Women of Wall Street
2 Oct, 2008, 1951 hrs IST, REUTERS
NEW YORK: Playboy magazine is offering a new way to lose your shirt on Wall Street.
The adult entertainment magazine, long famous for its photo spreads of nude women and lessons in living the urbane life of the well-heeled bachelor, is launching a search for models to pose for its upcoming feature, "Women of Wall Street."
Playboy came up with the idea for the feature after the onset of the global financial crisis, which has vaporized fortunes and left Wall Street reeling. It is planned for the February 2009 edition of the monthly magazine and on its website.
"When the news gets bad, then maybe that's a chance to make people smile by coming up with something that puts a different twist on it," said Gary Cole, Playboy's photo editor.
Playboy and Playboy.com frequently run specials such as "Girls of Olive Garden" and "Women of Home Depot," but in the past it has garnered attention for big business news themes.
It published "Women of Enron" and "Women of WorldCom" after the companies' spectacular failures. The magazine ran a "Women of Wall Street" feature nearly 20 years ago.
Playboy is seeking current and former employees of the financial world, and is especially interested in those with more senior job experience.
"It would be more interesting to have someone who's a financial analyst," said Cole.
Models must work for a financial institution or have recently worked for one, and prove that they are at least 18 years old.
"How many attractive women do you ... think there are working on Wall Street and the affiliated companies?" Cole said when asked how much success he thought Playboy would have in finding candidates. "There has to be thousands and thousands."
Playboy likely will photograph about 20 women, he said, adding that compensation would depend partly on how many women apply.
"Whether you offer them $500 or $1,000 or $2,000 a piece, that's probably not going to change anybody's mind," he said. "The reason they do this is because they want the attention, the opportunity, the experience of doing it. It's not really for the money."
via:E.T
NEW YORK: Playboy magazine is offering a new way to lose your shirt on Wall Street.
The adult entertainment magazine, long famous for its photo spreads of nude women and lessons in living the urbane life of the well-heeled bachelor, is launching a search for models to pose for its upcoming feature, "Women of Wall Street."
Playboy came up with the idea for the feature after the onset of the global financial crisis, which has vaporized fortunes and left Wall Street reeling. It is planned for the February 2009 edition of the monthly magazine and on its website.
"When the news gets bad, then maybe that's a chance to make people smile by coming up with something that puts a different twist on it," said Gary Cole, Playboy's photo editor.
Playboy and Playboy.com frequently run specials such as "Girls of Olive Garden" and "Women of Home Depot," but in the past it has garnered attention for big business news themes.
It published "Women of Enron" and "Women of WorldCom" after the companies' spectacular failures. The magazine ran a "Women of Wall Street" feature nearly 20 years ago.
Playboy is seeking current and former employees of the financial world, and is especially interested in those with more senior job experience.
"It would be more interesting to have someone who's a financial analyst," said Cole.
Models must work for a financial institution or have recently worked for one, and prove that they are at least 18 years old.
"How many attractive women do you ... think there are working on Wall Street and the affiliated companies?" Cole said when asked how much success he thought Playboy would have in finding candidates. "There has to be thousands and thousands."
Playboy likely will photograph about 20 women, he said, adding that compensation would depend partly on how many women apply.
"Whether you offer them $500 or $1,000 or $2,000 a piece, that's probably not going to change anybody's mind," he said. "The reason they do this is because they want the attention, the opportunity, the experience of doing it. It's not really for the money."
via:E.T
Fed may cut rates further: Report
2 Oct, 2008, 1859 hrs IST, REUTERS
TOKYO: Federal Reserve officials are weighing further interest rate cuts, even if Congress approves a $700 billion financial industry bailout, because of a worsening economic outlook, the Wall Street Journal said on Thursday. A rate cut is still far from certain, partly because of inflation worries, the WSJ said in an unsourced report on its website.
"The Fed's willingness to consider additional rate cuts marks a turnaround from the past few months, when soaring food and energy prices turned its attention to inflation risks," the Wall Street Journal said.
Currency traders in Tokyo said that while there was some chatter about the article among market players, the impact on the dollar seemed to be limited.
The dollar index, which measures the dollar's value against a basket of six major currencies, rose 0.6 percent on the day to 80.162.
Even before the article, investors were bracing for the Fed to lower interest rates as early as this month.
Market players have sharply increased their bets for an aggressive Federal Reserve interest rate cut after data released on Wednesday showed that US factory activity shrank in September to its lowest since the 2001 recession.
US short-term interest rate futures show that investors are bracing for the Fed to cut interest rates by at least a quarter percentage point at its policy meeting in late October.
The implied chance of a bigger, half-point rate cut to 1.5 percent is now seen at 60 percent, up from around 10 percent seen on Tuesday.
TOKYO: Federal Reserve officials are weighing further interest rate cuts, even if Congress approves a $700 billion financial industry bailout, because of a worsening economic outlook, the Wall Street Journal said on Thursday. A rate cut is still far from certain, partly because of inflation worries, the WSJ said in an unsourced report on its website.
"The Fed's willingness to consider additional rate cuts marks a turnaround from the past few months, when soaring food and energy prices turned its attention to inflation risks," the Wall Street Journal said.
Currency traders in Tokyo said that while there was some chatter about the article among market players, the impact on the dollar seemed to be limited.
The dollar index, which measures the dollar's value against a basket of six major currencies, rose 0.6 percent on the day to 80.162.
Even before the article, investors were bracing for the Fed to lower interest rates as early as this month.
Market players have sharply increased their bets for an aggressive Federal Reserve interest rate cut after data released on Wednesday showed that US factory activity shrank in September to its lowest since the 2001 recession.
US short-term interest rate futures show that investors are bracing for the Fed to cut interest rates by at least a quarter percentage point at its policy meeting in late October.
The implied chance of a bigger, half-point rate cut to 1.5 percent is now seen at 60 percent, up from around 10 percent seen on Tuesday.
NEWS ON COMPANIES
Wipro promoter Azim Premji will invest Rs 80 crore to acquire a stake in a company floated by Jagdish Khattar, former MD of Maruti Suzuki India. Khattar, who floated Carnation Auto, plans to invest Rs 1,000 crore in the next five years to launch a countrywide multi-brand automobile sales and service network. Wipro shares ended down 1.01 per cent at Rs 339.65.
Mahindra & Mahindra has created a trust which would hold 8.7 per cent stake in the company, after the merger of subsidiaries Punjab Tractors and Mahindra Holding Finance with itself. The trust has already acquired 4.96 per cent in M&M following the merger of Mahindra Holding Finance with itself. Its holding will go up to 8.7 per cent after the merger of Punjab Tractors with M&M. The merger of Punjab Tractors is expected to be completed next month. Shares of the utility vehicle major ended higher by 1.43 per cent at Rs 509.25 on BSE Tuesday.
Reliance Industries will sell oil from its Krishna-Godavari basin at a discount of around $5 per barrel to Brent crude oil. The company may add around $300 million (Rs 1,400 crore) to its turnover in the December quarter on the sale of KG oil. It had reported sales of Rs 41,579 crore in the first quarter ended June 2008. Shares of the index heavyweight closed at Rs 1946.35, up 0.80 per cent.
Uniflex Cables has reported net loss to Rs 14.30 crore for the quarter ended June 30, 2008 against a net profit of Rs 59.7 lakh for the same quarter in 2007. Net sales fell 14.56 per cent to Rs 22.16 crore in Apr-Jun quarter of 2008 compared with Rs 25.94 crore in the corresponding quarter of previous year. Despite this, the company’s shares ended up 1.96 per cent to Rs 18.20 on BSE.
Dena Bank has raised lower tier II bonds (Series X) capital funds to augment long-term resources and to meet its future capital adequacy ratio requirements in the nature of debentures on private placement basis for Rs 300 crore including green shoe option. The bonds carry a coupon of 11.20 per cent per annum and are redeemable after 127 months from the deemed date of allotment. The issue was fully subscribed to. The bank excised the green shoe option and retained the subscribed amount. The company shares ended up 4.18 per cent to Rs 41.10 on BSE.
Ashok Leyland has signed a joint venture agreement with John Deere, for manufacturing and marketing of construction equipment The JV seeks to commence production by early 2010 and will initially roll out backhoes and four-wheel-drive loaders. The range will subsequently be expanded to include a full line of construction equipment. Beyond India, the largest backhoe market in the world in 2007, the products will be exported to both Ashok Leyland and John Deere markets. The JV will build a manufacturing facility in India and is currently evaluating site location. Ashok Leyland shares ended up 2.12 per cent to Rs 26.50 on BSE.
Mahindra & Mahindra has created a trust which would hold 8.7 per cent stake in the company, after the merger of subsidiaries Punjab Tractors and Mahindra Holding Finance with itself. The trust has already acquired 4.96 per cent in M&M following the merger of Mahindra Holding Finance with itself. Its holding will go up to 8.7 per cent after the merger of Punjab Tractors with M&M. The merger of Punjab Tractors is expected to be completed next month. Shares of the utility vehicle major ended higher by 1.43 per cent at Rs 509.25 on BSE Tuesday.
Reliance Industries will sell oil from its Krishna-Godavari basin at a discount of around $5 per barrel to Brent crude oil. The company may add around $300 million (Rs 1,400 crore) to its turnover in the December quarter on the sale of KG oil. It had reported sales of Rs 41,579 crore in the first quarter ended June 2008. Shares of the index heavyweight closed at Rs 1946.35, up 0.80 per cent.
Uniflex Cables has reported net loss to Rs 14.30 crore for the quarter ended June 30, 2008 against a net profit of Rs 59.7 lakh for the same quarter in 2007. Net sales fell 14.56 per cent to Rs 22.16 crore in Apr-Jun quarter of 2008 compared with Rs 25.94 crore in the corresponding quarter of previous year. Despite this, the company’s shares ended up 1.96 per cent to Rs 18.20 on BSE.
Dena Bank has raised lower tier II bonds (Series X) capital funds to augment long-term resources and to meet its future capital adequacy ratio requirements in the nature of debentures on private placement basis for Rs 300 crore including green shoe option. The bonds carry a coupon of 11.20 per cent per annum and are redeemable after 127 months from the deemed date of allotment. The issue was fully subscribed to. The bank excised the green shoe option and retained the subscribed amount. The company shares ended up 4.18 per cent to Rs 41.10 on BSE.
Ashok Leyland has signed a joint venture agreement with John Deere, for manufacturing and marketing of construction equipment The JV seeks to commence production by early 2010 and will initially roll out backhoes and four-wheel-drive loaders. The range will subsequently be expanded to include a full line of construction equipment. Beyond India, the largest backhoe market in the world in 2007, the products will be exported to both Ashok Leyland and John Deere markets. The JV will build a manufacturing facility in India and is currently evaluating site location. Ashok Leyland shares ended up 2.12 per cent to Rs 26.50 on BSE.
Videocon Industries struck oil at a block in Brazil.
Videocon Industries (CMP=Rs 222)reports a consortium of the company has struck oil at a block in Brazil.
The stock has a 52-week high of Rs 868.65 on 1 January 2008 and a 52-week low of Rs 182.30 on 30 September 2008.
The company’s current equity is Rs 229.45 crore. Face value per share is Rs 10.
The current price of Rs 222 discounts Q3 June 2008 annualized EPS of Rs 44.49, a PE multiple of 4.99.
In August 2008, the company’s overseas unit Videocon Energy Ventures acquired 10% stake in Mozambique’s Rovuma Offshore Area 1 block from US firm Anadarko Petroleum Corporation.
Videocon Industries’ net profit rose 4.1% to Rs 255.07 crore on 18.5% increase in net sales to Rs 2612.90 crore in Q3 June 2008 over Q3 June 2007.
Videocon Industries' principal activity is to manufacture and market consumer electronics and home appliances. The company also has interest in segments like crude oil and natural gas.
The stock has a 52-week high of Rs 868.65 on 1 January 2008 and a 52-week low of Rs 182.30 on 30 September 2008.
The company’s current equity is Rs 229.45 crore. Face value per share is Rs 10.
The current price of Rs 222 discounts Q3 June 2008 annualized EPS of Rs 44.49, a PE multiple of 4.99.
In August 2008, the company’s overseas unit Videocon Energy Ventures acquired 10% stake in Mozambique’s Rovuma Offshore Area 1 block from US firm Anadarko Petroleum Corporation.
Videocon Industries’ net profit rose 4.1% to Rs 255.07 crore on 18.5% increase in net sales to Rs 2612.90 crore in Q3 June 2008 over Q3 June 2007.
Videocon Industries' principal activity is to manufacture and market consumer electronics and home appliances. The company also has interest in segments like crude oil and natural gas.
Jolly Board was locked at upper limit of 10% at Rs 676.65
Jolly Board was locked at upper limit of 10% at Rs 676.65 on BSE, extending gains for the third consecutive session.
The stock turned ex-bonus on 29 September 2008. The record date for 1-for-1 bonus issue is today, 1 October 2008.
The stock advanced 20.98% in last two trading session to Rs 615.15 on 30 September 2008 from Rs 508.47 on 26 September 2008.
The stock had a 52-week high of Rs 1000.86 on 19 November 2007 and a 52-week low of Rs 216.98 on 19 March 2008.
The small-cap wooden products maker has an equity capital of Rs 4.55 crore. Face value per share is Rs 10.
Jolly Board’s net profit rose 40% to Rs 1.54 crore on a 25.9% rise in sales to Rs 14.97 crore in Q1 June 2008 over Q1 June 2007.
Jolly Board manufactures hardboard, fiberboard, softboard and related products. The company sells its products under the Jolly Board trade name.
The stock turned ex-bonus on 29 September 2008. The record date for 1-for-1 bonus issue is today, 1 October 2008.
The stock advanced 20.98% in last two trading session to Rs 615.15 on 30 September 2008 from Rs 508.47 on 26 September 2008.
The stock had a 52-week high of Rs 1000.86 on 19 November 2007 and a 52-week low of Rs 216.98 on 19 March 2008.
The small-cap wooden products maker has an equity capital of Rs 4.55 crore. Face value per share is Rs 10.
Jolly Board’s net profit rose 40% to Rs 1.54 crore on a 25.9% rise in sales to Rs 14.97 crore in Q1 June 2008 over Q1 June 2007.
Jolly Board manufactures hardboard, fiberboard, softboard and related products. The company sells its products under the Jolly Board trade name.
Moser Baer secured an export order worth $500 million for supply of solar PV modules
Moser Baer India (CMP=Rs 116.90) has secured an export order worth $500 million for supply of solar modules to a major European solar system integrator.
The stock has a 52-week high of Rs 344.80 on 3 January 2008 and a 52-week low of Rs 87.90 on 1 August 2008.
The company’s current equity is Rs 168.30 crore. Face value per share is Rs 10.
The agreement with a cumulative value of more than $500 million, envisage supply of amorphous silicon Gen 8-5 thin film panels by PV Technologies India, Moser Baer’s photovalic subsidiary, up to the year 2012.
In June 2008, Moser Baer signed an agreement with Tamil Nadu government for setting up a plant at Oragadam near Chennai, to produce nano materials and photovoltaic products at an estimated cost of Rs 2,000 crore.
Moser Baer India reported a net loss of Rs 103.98 crore in Q1 June 2008 as against net profit of Rs 9.64 crore in Q1 June 2007. Net sales rose 2.1% to Rs 478.93 crore in Q1 June 2008 over Q1 June 2007.
The company manufactures storage media for data applications and audio/video applications. It is India's second largest manufacturer of IT & entertainment peripherals in terms of sales.
The stock has a 52-week high of Rs 344.80 on 3 January 2008 and a 52-week low of Rs 87.90 on 1 August 2008.
The company’s current equity is Rs 168.30 crore. Face value per share is Rs 10.
The agreement with a cumulative value of more than $500 million, envisage supply of amorphous silicon Gen 8-5 thin film panels by PV Technologies India, Moser Baer’s photovalic subsidiary, up to the year 2012.
In June 2008, Moser Baer signed an agreement with Tamil Nadu government for setting up a plant at Oragadam near Chennai, to produce nano materials and photovoltaic products at an estimated cost of Rs 2,000 crore.
Moser Baer India reported a net loss of Rs 103.98 crore in Q1 June 2008 as against net profit of Rs 9.64 crore in Q1 June 2007. Net sales rose 2.1% to Rs 478.93 crore in Q1 June 2008 over Q1 June 2007.
The company manufactures storage media for data applications and audio/video applications. It is India's second largest manufacturer of IT & entertainment peripherals in terms of sales.
Indo Tech Transformers bagged an export order worth Rs 30 crore.
Indo Tech Transformers (CMP=Rs 288)has bagged an export order worth Rs 30 crore for supply of power transformers.
The stock has a 52-week high of Rs 807.75 on 4 January 2008 and a 52-week low of Rs 232.25 on 30 September 2008.
The company’s current equity is Rs 10.62 crore. Face value per share is Rs 10.
The current price of Rs 288 discounts Q1 June 2008 annualized EPS of Rs 39.28, a PE multiple of 7.33.
The company has also commissioned a transformer tank manufacturing facility at its Kancheepuram plant at a total cost of Rs 3.50 crore, it said.
Indo Tech Transformers’ net profit surged 51.2% to Rs 10.43 crore on 37.2% increase in net sales to Rs 53.98 crore in Q1 June 2008 over Q1 June 2007.
The company's principal activity is to manufacture electrical, electronic and computer hardware related products, pre-stressed cement casting products in addition to various application transformers and mobile sub-station transformers.
The stock has a 52-week high of Rs 807.75 on 4 January 2008 and a 52-week low of Rs 232.25 on 30 September 2008.
The company’s current equity is Rs 10.62 crore. Face value per share is Rs 10.
The current price of Rs 288 discounts Q1 June 2008 annualized EPS of Rs 39.28, a PE multiple of 7.33.
The company has also commissioned a transformer tank manufacturing facility at its Kancheepuram plant at a total cost of Rs 3.50 crore, it said.
Indo Tech Transformers’ net profit surged 51.2% to Rs 10.43 crore on 37.2% increase in net sales to Rs 53.98 crore in Q1 June 2008 over Q1 June 2007.
The company's principal activity is to manufacture electrical, electronic and computer hardware related products, pre-stressed cement casting products in addition to various application transformers and mobile sub-station transformers.
Mahalaxmi Rubtech setting up wind power projects
Mahalaxmi Rubtech (CMP=Rs 40.75)about to consider setting up wind power projects for captive consumption.
The stock had a 52-week high of Rs 102.95 on 13 December 2007 and a 52-week low of Rs 38.20 on 30 September 2008.
The small-cap textile maker has an equity capital of Rs 5.17 crore. Face value per share is Rs 10.
The current price of Rs 40.75 discounts its Q1 June 2008 annualised EPS of Rs 3.09, by a PE multiple of 13.18.
Mahalaxmi Rubtech’s net profit rose 166.7% to Rs 0.40 crore on a 36.4% rise in sales to Rs 4.12 crore in Q1 June 2008 over Q1 June 2007.
Mahalaxmi Rubtech operates in two segments namely textile products and rubber products. The company manufactures textiles, besides making air cell product used in oil filled transformers.
The stock had a 52-week high of Rs 102.95 on 13 December 2007 and a 52-week low of Rs 38.20 on 30 September 2008.
The small-cap textile maker has an equity capital of Rs 5.17 crore. Face value per share is Rs 10.
The current price of Rs 40.75 discounts its Q1 June 2008 annualised EPS of Rs 3.09, by a PE multiple of 13.18.
Mahalaxmi Rubtech’s net profit rose 166.7% to Rs 0.40 crore on a 36.4% rise in sales to Rs 4.12 crore in Q1 June 2008 over Q1 June 2007.
Mahalaxmi Rubtech operates in two segments namely textile products and rubber products. The company manufactures textiles, besides making air cell product used in oil filled transformers.
Alfa Laval bagged large order from Vedanta Aluminium.
Alfa Laval India (CMP=Rs 742.55)has bagged an order worth SEK 150 million from Vedanta Aluminium.
The stock has a 52-week high of Rs 1222 on 2 January 2008 and a 52-week low of Rs 666.05 on 29 September 2008.
The company’s current equity is Rs 18.16 crore. Face value per share is Rs 10.
The current price of Rs 742.55 discounts Q2 June 2008 annualized EPS of Rs 57.09, a PE multiple of 13.
The project work involves setting up of three thermal evaporation systems. The order value is about SEK 150 million (Rs 101.85 crore). The project is to be executed by 2009.
Alfa Laval India’s net profit rose 29% to Rs 25.92 crore on 31.1% to Rs 194.23 crore in Q2 June 2008 over Q2 June 2007.
The company is engaged in manufacturing and marketing oil separators and vacuum units. The group operates in three segments: process technology, equipment and others.
The stock has a 52-week high of Rs 1222 on 2 January 2008 and a 52-week low of Rs 666.05 on 29 September 2008.
The company’s current equity is Rs 18.16 crore. Face value per share is Rs 10.
The current price of Rs 742.55 discounts Q2 June 2008 annualized EPS of Rs 57.09, a PE multiple of 13.
The project work involves setting up of three thermal evaporation systems. The order value is about SEK 150 million (Rs 101.85 crore). The project is to be executed by 2009.
Alfa Laval India’s net profit rose 29% to Rs 25.92 crore on 31.1% to Rs 194.23 crore in Q2 June 2008 over Q2 June 2007.
The company is engaged in manufacturing and marketing oil separators and vacuum units. The group operates in three segments: process technology, equipment and others.
Opto Circuits fixed 4 November 2008 as record date for issue of bonus shares in the ratio of 7:10.
Opto Circuits India (Rs 245.80) 4 November 2008 as record date for issue of bonus shares in the ratio of 7:10 .
The stock has a 52-week high of Rs 581 on 31 December 2007 and a 52-week low of Rs 216 on 30 September 2008.
The company’s current equity is Rs 94.17 crore. Face value per share is Rs 10.
The current price of Rs 245.80 discounts Q1 June 2008 annualized EPS of Rs 12.85, a PE multiple of 19.13.
On
Opto Circuits India’s net profit surged 30.6% to Rs 30.25 crore on 33.7% increase in net sales to Rs 82.35 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in designing, developing, manufacturing, marketing and distributing medical electronic devices and medical monitoring products. The group operates in two segments namely health and information technology.
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