Financial Daily from THE HINDU group of publications
Wednesday, Jun 26, 2002

Port Info

Group Sites

Markets - Stock Markets

Videocon scrips in the limelight

Jayanta Mallick

KOLKATA, June 25

THE scrips of the two Videocon group outfits — Videocon International and Videcon Appliances — seem to be back as the punter's favourites after the Securities Appellate Tribunal set aside the Securities and Exchange Board of India's earlier order banning the group from raising funds from the capital market for four years.

Both stocks, of late, have seen substantial volume growth. Prices had also been rising with occasional corrections on account of profit booking, market players said.

Videocon Appliances closed at around Rs 14 on Tuesday, with a gain of about three per cent. Over 13.5 lakh shares changed hands on the Bombay Stock Exchange and the National Stock Exchange. The Videocon International scrip attracted a combined volume of over 28 lakh shares on the two top bourses. It closed at the level of Rs 39 with an intra-day loss of about 4 per cent. The scrip had hit the 52-week high on Monday at Rs 41.35 on the BSE.

Though the counters are ruling slightly below their 52-week highs, they are clearly above their 50-day moving averages indicating technical strength, Mr Ajay Jaiswal of Lohia Securities pointed out. Videocon International's 50-day moving average is Rs 30, while Videocon Appliances' average price for the period is Rs 8.50.

Videocon Appliances began its current rally on June 10 from a level of Rs 10 with a combined volume of over 4.5 lakh shares on BSE and NSE. Videocon International begun its upward journey from May 23 with a price level of Rs 28 and a volume of a little over one lakh shares on the major bourses.

Brokers feel that fundamentally the stocks are poised better and have room for value growth. "Despite competition from foreign and strong domestic players, the group has held its own. The electronics goods/white goods industry is also showing higher sales signals in the current year. Moreover, the soccer World Cup is likely to have provided additional TV sales," a NSE dealer said.

Incidentally, the Videocon group holds around 26 per cent in Samsung India.

The group has been indicating its interest in a number of companies (Dabhol Power Project, Shipping Corporation of India and State Trading Corporation) and diversifying into newer areas on the strength of the Rs 1,500-crore reserves in Videocon International. The company recorded a 23.73 per cent drop in net in the fourth quarter of 2001-02 against 29.37 per cent decline in Q3.

Send this article to Friends by E-Mail

Stories in this Section
Birla Sun Life AMC's gesture to `Elite Circle'

Alliance Capital MF moots another equity product
Pru ICICI reveals indicative portfolio on fixed maturity
Narrow movement
Reliance group stocks under selling pressure
Nod for FDI brings media stocks into focus
Videocon scrips in the limelight
Raider weaves Bombay Dyeing?
Downside in Reliance?
Auto, steel stocks continue to advance
Cabinet nod for IPOs of oil PSUs in two months: Naik
Union Bank files draft for IPO
Consumer forum plea to activate investor fund

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line