Financial Daily from THE HINDU group of publications
Tuesday, Sep 09, 2003
Financial Daily from THE HINDU group of publications Tuesday, Sep 09, 2003 |
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Markets
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Stock Markets Columns - Ear to the ground Ucal Fuel in demand
THE counter of auto-ancillary company Ucal Fuel Systems is being eyed by the market players. Dealers said the interest in the stock is mainly on back of strong order book position for the carburettors for four and two wheelers and fuel pumps. The talks are that this huge order position is from its Japanese technical collaborator Mikuni Corporation. In addition, the company is also benefiting from the robust growth in the automobile sector in the country. Other than Maruti, Ucal other customers include TVS Suzuki, Hindustan Motors and Birla Yamaha. It also produces carburettors for gensets. Dealers said the company is expected to report EPS of around Rs 55 in the current fiscal. On this expectation several institutional investors have started buying the stock. Several of them bought the shares of the company on Monday also. The stock closed at Rs 302.95, up 6.86 per cent with volume of 87,098 shares on BSE and on NSE it closed at Rs 301.25, up 6.43 per cent with volume of 1.60 lakh shares.
OBC back on FIIs buy list AFTER remaining static for some time, the stock of public sector Oriental Bank of Commerce (OBC) is back on the buy list of several FIIs. The buying by FIIs is on back of the buy recommendation of a leading foreign broking firm that had first placed the stock on the buy-list at Rs 60 level. The further re-rating of the stock is mainly due to the asset quality of the bank among the best in the industry. Expectations are that the bank to have zero NPAs by the end of this financial year compared to current NPAs level of 1.4 per cent. The bank is also changing loan profile in favour of retail loans and is estimated to increase from 13 per cent in the last fiscal to 23 per cent by 2006. It is also setting up a technology platform, which will enable connectivity across almost 80 per cent of its business lines, thereby, efficiencies and fee revenues should further improve. Dealers said several FIIs bought the share of OBC from this broking firm on Monday. The stock gained 4.83 per cent at Rs 175.75 with volume of 3.76 lakh shares on BSE, and on NSE it closed at Rs 176, up 5.07 per cent with volume of 10.76 lakh shares.
Virendra Verma
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