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Friday, Jan 11, 2002

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Cipla to slip on margin pressure?

ONE company that could feel the pinch this quarter is pharma major Cipla. Market sources say that although the company's ensuing third quarter could show an increase in topline, the operating margins could come under pressure. Competition in the domestic market and the not-so-encouraging sales in AIDS drugs could put pressure on the company's margins.

But, Cipla's scrip went up on Thursday by 1.54 per cent to close at Rs 1,193 with 27,585 shares being traded on the BSE. On the NSE, the scrip closed at Rs 1197, up by 1.19 per cent with 35,844 shares being traded.

Funds' buy lifts Moser Baer

THE scrip of recordable CD maker Moser Baer India Ltd (MBIL) is attracting mutual funds' attention ahead of its third quarter results. MBIL is expected to show a net profit of around Rs 220-230 crore for the full year. This would translate into an EPS of around Rs 47 and P/E ratio of less than 7. Perceiving the stock to be undervalued, Alliance Mutual Fund is understood to have bought shares of MBIL. The stock has already shown upward movement.

On Thursday the stock closed 2.5 per cent higher at Rs 313.25 with a volume of 2.11 lakh shares on the BSE. On the NSE, MBIL ended 1.95 per cent higher at Rs 311.

Balaji Tele, Mukta to gain on funds hopes

TWO media companies — Balaji Telefilms and Mukta Arts — are expected to gain from their new initiatives. Balaji's initiative to focus on family serials has already been taken well by the media analysts. With more serials from Balaji on similar lines, analysts have projected a price target of Rs 500 in 12 months. Mutual funds have also started increasing their exposure in the counter. On the back of these developments, the company's share price has increased from below Rs 300 to the current levels of Rs 350.

Similarly, for Subash Ghai, the shift to new initiatives has lowered the business risk for Mukta Arts. With directors like Anil Sharma (of Gadar fame) and David Dhawan in the company's fold, the stock is expected to gain attention. The price target for the stock is set at Rs 120 in 12 months. The stock closed at Rs 71.20 on the BSE.

Virendra Verma
Aparna Krishnan

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