Nava Bharat Ventures recovers on strong Q4 results

Nava Bharat Ventures gained 0.43% to Rs 302.50 at 12:36 IST on BSE, off session's low of Rs 291, after posting 196.1% surge in net profit to Rs 129.41 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 305 so far during the day. The stock had a 52-week high of Rs 351.80 on 7 January 2008 and the stock hit a 52-week low of Rs 125 on 21 May 2007.

The company’s current equity is Rs 15.57 crore. Face value per share is Rs 2.

The current price of Rs 302.50 discounts its Q4 March 2008 annualised EPS of Rs 66.49, by a PE multiple of 4.55.

Nava Bharat Ventures’ net sales rose 86.6% to Rs 343.70 crore in Q4 March 2008 over Q4 March 2007.

The company is engaged in manufacturing and selling of ferro alloys. The group operates through three segments: ferro alloys, power and sugar. The group also provides infrastructure projects.

KGN relists after 7 years, zooms to Rs 55,000

Erratic movement was witnessed in KGN Industries counter today in which trading resumed after an earlier suspension.

After debuting at Rs 100, the stock scaled a high of a staggering Rs 55,000. The stock hit a low of Rs 72. The wild movement on the stock forced BSE to suspend trading in the stock for the day in afternoon trade. The stock last traded at Rs 15001 at 12:20 IST. A mere 827 shares were traded in the counter on BSE.

Since trading in the stock was to begin after an earlier suspension, BSE had decided not to impose daily circuit filters in the stock pertaining to today’s trading to facilitate price discovery.

But given that the earnings per share (EPS) is just Rs 0.68 for the year ended 31 March 2008, the price movement in the counter today has raised a lot of eyebrows. The stock was last traded at Rs 11.85 on 8 June 2001.

The company is in the business of trading in agro commodities like castor seeds, castor oil, castor oil derivatives etc. The company reported net profit of Rs 1.51 crore on net sales of Rs 186.57 crore in the year ended 31 March 2008

Praj Industries leads gainers in 'A' group

HMT, Chambal Fertilizers and Chemicals, Gujarat NRE Coke and GTL Infrastructure are among the other gainers in “A” group shares.

Praj Industries spurted 11.26% to Rs 217.80. It was the top gainer from BSE’s A group shares.

HMT surged 10% to Rs 84.15. It was the second top gainer from BSE’s A group shares.

Chambal Fertilizers and Chemicals advanced 6.46% to Rs 82.45. It was the third biggest gainer from A group shares.

Gujarat NRE Coke gained 6.28% to Rs 159. It was the fourth biggest gainer in A group.

GTL Infrastructure rose 6.04% to Rs 54.45. It was the fifth biggest gainer in A group

TRADING TIP FOR 21-5-08

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Bharat Forge Q4 net up 29%

Press Trust of India / Mumbai May 20, 2008, 17:31 IST

Auto component manufacturer Bharat Forge today announced a standalone net profit of Rs 82.85 crore for the quarter ended March 31, a 28.89 per cent growth over the corresponding period a year-ago.

The firm had a net profit of Rs 64.28 crore in the fourth quarter of FY'07, Bharat Forge said in a filing to the Bombay Stock Exchange.

The total income rose to Rs 576.50 crore for the latest quarter, from Rs 537.87 crore in the previous fiscal.

The board has declared a dividend of 175 per cent at the rate of Rs 3.50, on shares of face value of Rs two, for FY'08.

For the year ended March 31, the firm announced a consolidated net profit of Rs 301.52 crore, a 3.76 per cent growth over the year-ago period. The firm had a net profit of Rs 290.59 crore in FY'07.

The consolidated total income rose to Rs 4,751.57 crore in FY'08, from Rs 4275.21 crore in the year-ago period.

For the year ended March 31, Bharat Forge announced a standalone net profit of Rs 273.59 crore, a 13.55 per cent growth over the year-ago period.

The standalone total income rose to Rs 2,284.90 crore in FY'08, from Rs 1,945.3 crore in the year-ago period.

The board has approved the appointment of Sunil Chaturvedi as the Additional Director and also the Executive Director of the company with effect from today.

Further, the board has reviewed its earlier decision of warrants issue to promoter group and has instead decided to issue non-convertible debentures with detachable warrants, convertible into equity shares, to the shareholders.

Through the said issue, the company is planning to raise up to Rs 400 crore, the filing added.

Oil crosses $129 for first time, heads for $130

20 May, 2008, 2033 hrs IST, AGENCIES

VIENNA: Oil prices spiked a new trading high Tuesday, sweeping past $129 a barrel as supply concerns intensified the momentum buying that has lifted crude higher into record territory.

The June contract for light, sweet crude traded as high as $129.31 in electronic pre-opening trading on the New York Mercantile Exchange before settling back to $128.75, up $1.70 on the day.

This latest surge comes after OPEC's president was quoted as saying his organization won't increase its output before its next meeting in September.

The imminent expiration of the June contract is adding to the volatility. The contract will end at the close of trading Tuesday.

The contract reached a new closing high of $127.05 Monday after Algerian Energy Minister Chakib Khelil, the current president of the Organization of Petroleum Exporting Countries, was quoted by a government newspaper as saying OPEC won't increase its output during the US summer driving season, which begins this weekend. OPEC's next meeting is scheduled for Sept 9.

Concern about supply has recently become the primary driver of the market, replacing earlier worries about a weakening dollar, and not even Saudi Arabia's promise last week of an additional 300,000 barrels of crude a day could alleviate those new concerns.

Despite that pledge from the world's leading oil producer and the US move to temporarily stop filling government stockpiles, prices have shown no indication of stopping their record run.

Through Monday's close, the front-month contract has hit nine trading or closing records in 11 sessions. Analysts have said speculative buying has also contributed to oil's record high run.

In other news lifting prices, independent refiner Holly Corp. said a key unit at its New Mexico refinery was shut down for repairs, cutting estimated May gasoline production by as much as 756,000 gallons per day. The shutdown occurred while the fluid catalytic cracking unit was being brought back online from a previous shutdown May 7.

The refinery in Artesia, New Mexico, is Holly's largest. As oil prices reach new heights, so have gasoline and diesel costs.

``Average gasoline prices in the US rose for an eighth straight week and for the 15th time this year, up 1.8 per cent or 6.9 cents to a record $3.791 a gallon,'' noted Stephen Schork in his Schork Report. ``Gasoline at the pump is averaging 28.5 per cent above last year's pace.''

Drivers in some parts of the US are paying considerably more, however. Gas pump prices in parts of California have been stuck above $4 a gallon for weeks now.

In other Nymex trading, heating oil futures rose 0.14 cent to $3.7665 a gallon (3.8 liters) while gasoline prices rose 4.89 cents to $3.2855 a gallon. Natural gas futures rose 17.9 cents to $11.133 per 1,000 cubic feet.

Suzlon Energy gains on decent Q4 show

Suzlon Energy gained 0.76% to Rs 310.30 at 12.41 IST on BSE after posting 10.22% rise in net profit to Rs 482.55 crore on 32.86% increase in total income to Rs 2786.83 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 314 and a low of Rs 300.50 so far during the day. The stock had a 52-week high of Rs 460 on 9 January 2008 and the stock hit a 52-week low of Rs 220.10 on 7 March 2008.

The company’s current equity is Rs 299.38 crore. Face value per share is Rs 2.

The current price of Rs 310.30 discounts its Q3 December 2007 annualised EPS of Rs 9.04, by a PE multiple of 34.33.

Suzlon Energy’s net profit rose 19.28% to Rs 1265.71 crore on 28.95% increase in total income to Rs 7051.62 crore in the year ended March 2008 (FY 2008) over the year ended March 2007 (FY 2007).

On 5 April 2008, Suzlon Energy’s wholly owned subsidiary Suzlon Energy (Tianjin) secured orders totaling nearly 200-megawatt of capacity for wind farm projects in China.

On 2 April 2008, Suzlon Wind Energy Corporation, USA, a step-down subsidiary of the company signed an additional order for 200-megawatt of wind turbine capacity with Horizon Wind.

On 8 February 2008, Suzlon Energy’s wholly owned subsidiary Suzlon Wing Energy A/S, Denmark received an order from Spanish Saving Bank Unicaja, Spain for 102.90 megawatt of wind turbine capacity.

On 5 February 2008, the company’s wholly owned subsidiary Suzlon Energy Australia secured an order for 56.7 megawatt of wind turbine from Pacific Hydro, Australia.

Suzlon Energy provides customers with total wind power solutions.

California Software setting record date for share split

California Software Company gained 1.01% to Rs 95 at 12:09 IST on BSE on setting record date for a 10-for-1 stock split.

The stock hit a high of Rs 95 and a low of Rs 94.55 so far during the day. The stock had a 52-week high of Rs 107 on 2 January 2008 and the stock hit a 52-week low of Rs 54 on 26 June 2007.

The company’s current equity is Rs 12.36 crore. Face value per share is Rs 1.

The current price of Rs 95 discounts its Q3 December 2007 annualised EPS of Rs 9.70, by a PE multiple of 9.93.

California Software Company has fixed the record date on 4 June 2008 for a stock split of 10-for-1 stock split. California Software Company has fixed 4 June 2008 as record date for stock split. The company announced the record date on Monday, 19 May 2008.

California Software Company’s net profit rose 248.84% to Rs 3 crore on 22.51% increase in net sales to Rs 16.6 crore in Q3 December 2007 over Q2 September 2007.

The company provides technology solutions to industries like energy, education, healthcare, hospitality, high technology and manufacturing. The group operates in three segments, namely, technology solutions, enterprise solutions and commodity solutions.

Suven Life Sciences gains on bagging overseas patent rights

Suven Life Sciences surged 3.89% to Rs 34.75 at 11:30 IST on BSE after the company said it has secured two product patents for its experimental drug in South Africa and China.

The stock hit a high of Rs 35.85 and a low of Rs 33 so far during the day. The stock had a 52-week high of Rs 64.45 on 28 December 2007 and the stock hit a 52-week low of Rs 28 on 19 October 2007.

The company’s current equity is Rs 11.57 crore. Face value per share is Rs 1.

The current price of Rs 34.75 discounts its Q4 March 2008 annualised EPS of Rs 0.67, by a PE multiple of 51.87.

On 5 May 2008, Suven Life Sciences received European product patent from European Patent Office for its clinical candidate SUVN-502.

In April 2008, Suven Life Sciences’ clinical research division entered into a pact with China-based VPSCRO, to conduct clinical trial services in India and China.

In March 2008, the company secured patent rights in Mexico and Korea for two of its new chemical entities for the treatment of disorders associated with neurodegenerative diseases.

Suven Life Sciences’ net profit declined 33.3% to Rs 1.94 crore on 24.4% growth in net sales to Rs 35 crore in Q4 March 2008 over Q4 March 2007.

Suven Life Sciences is engaged in design, manufacture and the supply of bulk active, drug intermediates and fine chemicals to the life science industry. The company mainly operates in the USA, Europe, Asia and India.

NMDC gains on strong quarterly earnings

NMDC gained 1.14% to Rs 1458 at 10:14 IST on BSE on reporting 43% surge in net profit to Rs 1016.97 crore on 38.5% rise in net sales to Rs 1894.51 crore in Q4 March 2008 over Q4 March 2007.

The company announced the results after trading hours on Friday, 16 May 2008.

The stock hit a high of Rs 1468 and a low of Rs 1431 so far during the day. The stock had a 52-week high of Rs 1658.41 on 6 November 2007 and the stock hit a 52-week low of Rs 200 on 17 May 2007.

The company’s current equity is Rs 132.16 crore. Face value per share is Rs 1.

The current price of Rs 1458 discounts its Q4 March 2008 annualised EPS of Rs 307.80, by a PE multiple of 4.74.

NMDC’s net profit rose 40.12% to Rs 3250.98 crore on 40.55% increase in total income to Rs 6381.84 crore in the year March 2008 over the year ended March 2007.

National Mineral Development Corporation (NMDC) primarily mines iron ore. It also dabbles in diamonds and limestone.

Post Market Commentary 20th May-08

Sensex sheds 205 points as oil boils; banking, realty shares drop

The market could not hold on to the last week’s gains as weak global markets and record high oil prices weighed on the market sentiment today. Concerns about a further monetary tightening by the Reserve Bank of India (RBI) heightened after RBI governor Y V Reddy today said inflation rate was totally unacceptable and the official data underestimates the actual rise.

Crude-oil futures marked their first close above $127 a barrel Monday 19 May 2008,

Bongaigaon Refineries Attractive dividend yield

Bongaigaon Refinery & Petrochemicals rose 9.01% to Rs 61.70 at 15:21 IST on BSE after the company today, 16 May 2008, announced a divided of Rs 5 per share or 50% for the year ended March 2008, giving an attractive dividend yield of 8.1%.

Dividend is tax free in the hands of shareholders

The stock hit a high of Rs 62.30 and a low of Rs 57.40 so far during the day. The stock had a 52-week high of Rs 116.80 on 16 November 2007 and the stock hit a 52-week low of Rs 44.60 on 22 January 2008.

The company’s current equity is Rs 199.82 crore. Face value per share is Rs 10.

The current price of Rs 61.70 discounts its Q3 December 2007 annualised EPS of Rs 17, by a PE multiple of 3.62.

The company posted 67.84% rise in net profit to Rs 30.38 crore on 53.89% rise in net sales to Rs 1839.90 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during the market hours today 16 May 2008.

The operates a refinery with a petrochemical complex.

SAIL good Q4 result

Steel Authority of India jumped 7.48% to Rs 186.15 at 15:13 IST on BSE on reporting 24.97% rise in net profit to Rs 2376.76 crore on 30.42% increase in total income to Rs 13855.25 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 186.60 and a low of Rs 172.50 so far during the day. The stock had a 52-week high of Rs 292.50 on 13 December 2007 and the stock hit a 52-week low of Rs 123.75 on 8 June 2007.

The company’s current equity is Rs 4130.40 crore. Face value per share is Rs 10.

The current price of Rs 186.15 discounts its Q3 December 2007 annualised EPS of Rs 18.74, by a PE multiple of 9.93.

Steel Authority of India (Sail)’s net profit rose 21.52% to Rs 7536.78 crore on 17.59% increase in total income to Rs 41517.04 crore in the year ended March 2008 over the year ended March 2007.

Sail is engaged in manufacturing and marketing iron and steel. The group produces both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets.

Texmaco speeds up on stock split proposal

Texmaco rose nearly 3% to Rs 1,640 at 14:58 IST on BSE after its board approved a 10-for-1 stock split.

The stock hit a high of Rs 1677 and a low of Rs 1560 so far during the day. The stock had a 52-week high of Rs 1965.50 on 2 January 2008 and the stock hit a 52-week low of Rs 848.05 on 16 May 2007.

The company’s current equity is Rs 10.32 crore. Face value per share is Rs 10.

The current price of Rs 1,640 discounts its Q3 December 2007 annualised EPS of Rs 56.46, by a PE multiple of 29.04.

Texmaco’s net profit rose 107.40% to Rs 14.58 on 78.5% increase in net sales to Rs 160.54 crore in Q3 December 2007 over Q3 December 2006.

Texmaco, a part of K K Birla Group, is a diversified engineering company. It manufactures railway freight cars/wagons, hydro-mechanical equipment for mega power projects, heavy steel structures and process equipment.

McNally Bharat Engineering Acquisition of Sayaji Iron & Engineering Co

McNally Bharat Engineering Company rose 2.23% to Rs 176.55 at 14:33 IST on BSE after its board approved acquiring 68.3% in Gujarat-based Sayaji Iron & Engineering Company.

The stock hit a high of Rs 182 and a low of Rs 171.10 so far during the day. The stock had a 52-week high of Rs 316.90 on 17 December 2007 and the stock hit a 52-week low of Rs 140.25 on 24 March 2008.

The company’s current equity is Rs 31.24 crore. Face value per share is Rs 10.

The current price of Rs 176.55 discounts its Q3 December 2007 annualised EPS of Rs 6.9, by a PE multiple of 25.58.

The company said the stake would be purchased from the existing founders of Sayaji for Rs 59 crore.

Sayaji with its plant located in Vadodara, Gujarat and represented by its 8 marketing offices across the country is currently engaged in manufacturing wide range of equipment used in crushing, grinding, screening, road making, construction and material handling equipment, customized equipment for steel, cement, power and coal plants and complex turnkey projects.

McNally Bharat Engineering Company provides turnkey solutions in the areas of power, steel, alumina, material handling, mineral beneficiation, coal washing, ash handling and disposal, port cranes, civic and industrial water supply.

McNally Bharat Engineering Company’s net profit rose 29.2% to Rs 4.95 crore on 4.8% growth in net sales to Rs 118.13 crore in Q3 December 2007 over Q3 December 2006.

Champagne Indage on overseas acquisitions

Champagne Indage gained 2.76% to Rs 544.90 at 14:18 IST on BSE after the company said its 100% subsidiaries have entered into arrangements to acquire wine businesses in various global wine producing regions viz. South Africa, UK and South Australia.

The stock hit a high of Rs 544.90 and a low of Rs 519.95 so far during the day. The stock had a 52-week high of Rs 981 on 21 November 2007 and the stock hit a 52-week low of Rs 423 on 25 March 2008.

The company’s current equity is Rs 15.27 crore. Face value per share is Rs 10.

The current price of Rs 544.90 discounts its Q3 December 2007 annualised EPS of Rs 59.28, by a PE multiple of 9.19.

Champagne Indage’s net profit rose 156.1% to Rs 18.82 crore on 85.4% rise in net sales to Rs 76.41 crore in Q3 December 2007 over Q3 December 2006.

Champagne Indage produces wine in India. The company exports wine to US, Japan, the UK, Switzerland, Germany and other European countries. It has a rich portfolio of 64 brands priced to target different income groups.

Bank of India robust FY 2008 numbers

Bank of India rose 4.22% to Rs 353.30 at 13:44 IST on BSE on reporting 76.87% rise in net profit to Rs 1959.84 crore on 38.26% rise in total income to Rs 14528.41 crore, on a consolidated basis, in the year ended March 2008 over year ended March 2007

The stock hit a high of Rs 356.90 and a low of Rs 341.15 so far during the day. The stock had a 52-week high of Rs 466 on 17 January 2008 and the stock hit a 52-week low of Rs 181.80 on 13 June 2007.

The bank’s current equity is Rs 525.17 crore. Face value per share is Rs 10.

The current price of Rs 353.30 discounts its Q4 March 2008 annualised EPS of Rs 57.58, by a PE multiple of 6.13.

The bank's principal activities are the provision of banking services. The services of the group include acceptance of deposits, provision of loans, financing rehabilitation, treasury and investment management services to consumers and industries.

Union government holds 64.47% stake in the bank.

Chennai Petroleum Corporation Strong quarterly earnings

Chennai Petroleum Corporation surged 5.40% to Rs 369 at 9:56 IST on BSE on reporting 81.9% surge in net profit to Rs 343.92 crore on 48% increase in net sales to Rs 8367.89 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 388.50 and a low of Rs 365 so far during the day. The stock had a 52-week high of Rs 490.05 on 19 November 2007 and the stock hit a 52-week low of Rs 182.50 on 22 January 2008.

The company’s current equity is Rs 148.94 crore. Face value per share is Rs 10.

The current price of Rs 369 discounts its Q4 March 2008 annualised EPS of Rs 92.33, by a PE multiple of 4.

Chennai Petroleum Corporation (CPCL)’s net profit rose 98.66% to Rs 1122.95 crore on 13.69% rise in total income to Rs 28147.08 crore in the year ended March 2008 over the year ended March 2007.

The company engaged in manufacturing and supplying petroleum products and other related products. The company’s product includes high-speed diesel, motor spirit and furnace oil.

Tata Teleservices (Maharashtra) slips for defaulting DOT licence fee

Tata Teleservices (Maharashtra) declined 0.69% to Rs 35.80 at 12:52 IST on reports the Department of Telecommunications has filed a petition before the telecom tribunal seeking to recover Rs 2015 crore from the company for defaulting licence fee.

The stock hit a high of Rs 36.40 and a low of Rs 35.50 so far during the day. The stock had a 52-week high of Rs 65 on 4 January 2008 and the stock hit a 52-week low of Rs 24.50 on 9 July 2007.

The company’s current equity is Rs 1,897.19 crore. Face value per share is Rs 10.

As per reports, the controversy started when the department of telecommunication (DoT) alleged the erstwhile Hughes Tele.com, now Tata Teleservices Maharashtra (TTML) over the non-implementation of Karnataka circle basic service letter of intent (LoI) of 1997 and DoT recovered Rs 50 crore from Hughes Tele.com in 1999 for not signing the basic service licence for Karnataka circle. This was challenged by Hughes Tele.com before the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) in 2001.

Later, TDSAT in its judgment of 2003 on this matter held as illegal the recovery and ordered DoT to refund Rs 50 corre to TTML (the erstwhile Hughes Tele.com) with interest at 17% and also awarded Rs 10,000 as costs to TTML.

DoT at the end of the TDSAT hearing in 2003 made a counter-claim of Rs 654 crore against TTML, alleging loss of licence fee of Rs 303 crore and the balance calculated as interest up to October 2002.

TDSAT in its judgment recorded that this counter-claim was an after thought on the part of DoT; DoT had never issued any notices to TTML for such an amount, and if DoT had any right to recover such amount, as per law it would necessarily have to take appropriate proceedings before other Courts. The DoT`s counter-claim was accordingly rejected by TDSAT keeping in view the law and the facts of the case.

TTML believes the current counter-claim has no merit whatsoever, and if admitted by TDSAT will contest it once again, and as on the previous occasion, is confident it will succeed once more.

Tata Teleservices (Maharashtra) reported net loss of Rs 27.43 crore in Q3 December 2007 as against net loss of Rs 59.17 crore in Q3 December 2006. Sales rose 21.3% to Rs 439.76 crore in Q3 December 2007 over Q3 December 2006.

The Tata group operates mobile services through two companies – the listed Tata Teleservices (Maharashtra) and unlisted Tata Teleservices. Tata Teleservices (Maharashtra) offers CDMA-based services in the Maharashtra and Mumbai circles, while Tata Teleservices operates in 18 circles.

L&T builds on new tie-up

Larsen & Toubro gained 1.95% to Rs 3020.20 at 12:28 IST on BSE after the company said it had entered into a partnership agreement with GE Energy, a unit of General Electric, for power plant control systems in India.

The stock hit a high of Rs 3030 and a low of Rs 2975.45 so far during the day. The stock had a 52-week high of Rs 4670 on 1 November 2007 and the stock hit a 52-week low of Rs 1665 on 25 May 2007.

The company’s current equity is Rs 58.46 crore. Face value per share is Rs 2.

The current price of Rs 3020.20 discounts its Q3 December 2007 annualised EPS of Rs 66.03, by a PE multiple of 45.74.

GE Energy will provide its power plant main control system products to Larsen & Toubro (L&T), whereas L&T will leverage its strengths in engineering and project execution to deliver comprehensive power plant automation solutions to customers.

Atlanta based GE Energy is engaged in supplying power generation and energy delivering technologies with the revenue of $22 billion in 2007. GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy.

On 15 May 2008, L&T entered into an agreement with Lafarge India for sale of its ready mix concrete business for an enterprise value of Rs 1480 crore.

On 16 April 2008, L&T signed an agreement with Tamil Nadu Government to set up an integrated shipyard complex with a total investment of about Rs 3000 crore in north Chennai.

On 15 April 2008, L&T secured an order worth Rs 2000 crore from Bombay Dyeing for developing textile mills & spring mills complexes at Worli and Wadala regions of Mumbai.

On 9 April 2008, L&T bagged four different orders worth Rs 1,687 crore from four different clients.

On 31 March 2008, L&T’s engineering and construction division received an order worth Rs 576 crore from Hindustan Petroleum Corporation.

On 18 March 2008, L&T’s heavy engineering division bagged an order worth 28 million Euros from Hebi Coal & Electricity Co, China for supplying coal gasifier & syngas cooler assembly.

On 5 March 2008, the company bagged three orders for transmission line projects totaling Rs 458 crore.

L&T’s net profit rose 40.1% to Rs 481.79 crore on 55.1% growth in net sales to Rs 6382.68 crore in Q3 December 2007 over Q3 December 2006.

The company manufactures a wide range of engineering products like earthmoving, industrial and chemical machinery, switchgears, valves and welding alloys.

Phoenix Mills to set up a luxury mall

Phoenix Mills declined 1.03% to Rs 390 at 11:41 IST on BSE on reports it plans to invest Rs 100 crore to set up a luxury mall as part of a Rs 800-crore hotel project in central Mumbai.

The stock hit a high of Rs 404 and a low of Rs 385 so far during the day. The stock had a 52-week high of Rs 560 on 17 December 2007 and the stock hit a 52-week low of Rs 325 on 22 January 2008.

The company’s current equity is Rs 27.14 crore. Face value per share is Rs 2.

The current price of Rs 390 discounts its Q4 March 2008 annualised EPS of Rs 39.61, by a PE multiple of 9.84.

The 2,00,000 square foot luxury mall will start operations in March 2009, Phoenix Mills director Atul Ruia said on Thursday, 15 May2008. Phoenix is building a 400-room hotel, which is expected to start operations in March 2010.

The project is funded through a mix of debt and equity. Phoenix Mills has raised about Rs 1300 crore through equity placements with two institutional investors in the past 12 months and has raised Rs 400 crore as debt. Phoenix Mills is currently developing 7 hotels and 15 malls across the country, Ruia said.

The company’s net profit rose 26% to Rs 134.39 crore on 56.3% rise in sales to Rs 23.08 crore in Q4 March 2008 over Q4 March 2007. The other income stood at Rs 137.47 crore in Q4 March 2008.

Phoenix Mills is into retail-led mixed-use development segment.

Edelweiss Capital Strong Q4 numbers

Edelweiss Capital declined 1.08% to Rs 801.10 at 10:46 IST on BSE despite reporting 88.51% rise in net profit to Rs 10.01 crore on 252.64% rise in total income to Rs 71.2 crore in Q4 March 2008 over Q4 March 2007.

The stock hit a high of Rs 841.90 and a low of Rs 792 so far during the day. The stock had a 52-week high of Rs 1,795 on 3 January 2008 and the stock hit a 52-week low of Rs 563.50 on 24 March 2008.

The company’s current equity is Rs 37.47 crore. Face value per share is Rs 5.

The current price of Rs 801.10 discounts its Q3 December 2007 annualised EPS of Rs 2.22, by a PE multiple of 360.85.

The company’s net profit rose 6.35% to Rs 28.78 crore on 148.98% rise in total income to Rs 187.66 crore in the year ended March 2008 over the year ended March 2007.

Edelweiss Capital provides investment banking, institutional equities, private client broking, asset management, wealth management, insurance broking and wholesale financing services to corporate, institutional and high net worth individual clients.

Ankit Metal & Power Expansion plan

Ankit Metal & Power rose 3.2% to Rs 95.15 at 10:21 IST on BSE on reports it plans to invest Rs 1000 crore in three years to expand capacity to 5,00,000 tonnes per annum.

The stock hit a high of Rs 98.25 and a low of Rs 94 so far during the day. The stock had a 52-week high of Rs 104.40 on 1 January 2008 and the stock hit a 52-week low of Rs 36.50 on 10 July 2007.

The company’s current equity is Rs 32.88 crore. Face value per share is Rs 10.

The current price of Rs 95.15 discounts its Q3 December 2007 annualised EPS of Rs 7.58, by a PE multiple of 12.55.

The expansion project will be funded through a mix of debt and equity. The firm sees revenue at Rs 450 crore in the current fiscal year that ends in March 2009 (FY 2009) from Rs 350 crore in the year ended March 2008 (FY 2008), on high demand from construction and real estate sectors.

Kolkatta-based Ankit Metal and Power manufactures sponge iron, steel billets and re-rolled products.

The company’s net profit rose 124.1% to Rs 6.23 crore on 28.9% rise in sales to Rs 77.86 crore in Q3 December 2007 over Q3 December 2006.

THE WEEK THAT WAS

Market shrugs off weak industrial production data

The key benchmark indices soared last week shrugging off weak industrial production data, high inflation and soaring global crude oil prices. Depreciating domestic currency against the dollar boosted export driven IT stocks.

The BSE Sensex rose 697.87 points or 4.17% to 17,434.94 in the week ended Friday, 16 May 2008. The S&P CNX Nifty rose 175.10 points or 3.51% to 5157.70 in the week.

The BSE Mid-Cap index rose 137.04 points or 1.96% at 7,129.70 in the week. The BSE Small-Cap index rose 114.62 points or 1.35% at 8,620.26.

The wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week's annual rise of 7.61%, government data released on 16 May 2008, showed. It was the highest since an annual reading of 7.93% n 6 November 2004. The annual inflation rate was 5.74% during the corresponding week of the previous year.

India's industrial production growth dropped sharply to 3% in March 2008, slowing from the previous month's unrevised 8.6%, government data showed on Monday, 12 May 2008. It was the slowest annual growth since a 2.4% rise in February 2002.

Manufacturing production rose 2.9% in March 2008 from a year earlier, compared with 8.6% growth in February 2008. Industrial output rose 8.1% in 2007/08 compared with 11.6% in 2006/07.

US light crude for June delivery surged to a record high of $126.98 on Tuesday, 13 May 2008. However, that price eased to $123.74 on 15 May 2008 as rising US distillates stocks and Iran's reassurances that it would not cut crude exports added to a strengthening US dollar to limit the upside.

India's rupee fell to the lowest level since April 2007 to 42.445 per dollar on Wednesday, 14 May 2008 on speculation record crude oil prices will widen the nation's trade and current-account deficits, increasing demand for foreign currencies. The currency also weakened after overseas investors further sold local equities.

Foreign institutional investors (FII) have, so far, sold shares worth Rs 529.10 crore this month, till 14 May 2008. They sold shares worth Rs 10,887.20 crore in calendar year 2008, till 14 May 2008. Domestic funds sold shares worth Rs 639.80 this month, till 14 May 2008.

Tourist arrivals in India rose 10.7% to 3,69,677 in April 2008 over April 2007, the government data showed on Monday, 12 May 2008. Foreign exchange earnings from the sector rose 6.8% to $817 million in April 2008 over April 2007.

C. Rangarajan, chairman of Prime Minister’s Economic Advisory Council, on 12 May 2008, said the annual inflation rate is expected to moderate to 6% in the next three to four months from 3-½ year highs of 7.6% in late April 2008. Rangarajan said the economy is expected to grow 8% to 8.5% in the fiscal year ending March 2009 as high global oil prices shave off some momentum.

Bank stocks take surge in inflation in their stride

Five Banking stocks rose between 0.36% to 5.69% at 12:22 IST on BSE despite the latest data showing inflation remainedi at highest level in more than three years.

Punjab National Bank (up 5.69% to Rs 567.65), Bank of India (up 4.32% to Rs 353.65), HDFC Bank (up 2.87% to Rs 1,518.50), State Bank of India (up 1.3% to Rs 1,702.50), and ICICI Bank (up 0.36% to Rs 932) edged higher.

India's wholesale price index rose 7.83% in the 12 months to 3 May 2008 higher than previous week's annual rise of 7.61%, government data showed on Friday. It was the highest since an annual reading of 7.93% on 6 November 2004. The annual inflation rate was 5.74% during the corresponding week of the previous year.

The Reserve Bank of India (RBI) in its annual monetary policy on 29 April 2008 had kept interest rates unchanged. The central bank, however, raised the cash reserve ratio (CRR) by 25 basis points to 8.25% with effect from 24 May 2008. The CRR is the percentage of banks' deposits which they must keep as cash with the central bank. It may be recalled that RBI had earlier in April announced a two-stage rise in CRR to 8%.

The Reserve Bank of India (RBI) had said managing liquidity would continue to receive priority in its policy objectives and warned it would act swiftly to curb any signs of adverse developments in inflation expectations. RBI deputy governor Rakesh Mohan had hinted that the apex bank has sufficient policy measures in the pipeline.

The government also has taken a slew of fiscal measures such as ban on export of cement and non-basmati rice, cut in import duty on some items and imposition of export duty on some steel items to rein in rising prices.