Financial Daily from THE HINDU group of publications
Saturday, Dec 13, 2003
Financial Daily from THE HINDU group of publications Saturday, Dec 13, 2003 |
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Markets
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Stock Markets Improving auto sales drive up SKF Bearings Our Bureau
Mumbai , Dec. 12 THE stock price of automotive component company SKF Bearings India is on the rise over the last few days due to the increased interest of investor's interest towards auto and auto component stocks. Brokers said buying in the stock is also due to the good performance of the company in the current year and expectation of good performance next year. The stock price of SKF Bearings has increased by around 30 per cent in the last one month. In Friday's trading, the stock gained 3.62 per cent on the BSE with volume of 2.86 lakh shares and on the NSE it closed at Rs 114.40, up 3.39 per cent with volume of 5.25 per cent. Several institutional investors are also buying the shares of the company. Brokers said the increased sales of the automobiles in the country have resulted in good business for the company. "When the entire automobile industry is growing rapidly, companies like SKF Bearings are bound to grow,'' said an analyst. In the current year also, the financial performance of the company has been good compared to previous year (year ended December). In the first nine months of the current year (till September 2003), the company reported a net profit of Rs 20.19 crore compared to Rs 20.42 crore for the year ended December 2002. The significant increase in the net profit is the result of increased volumes in the automotive and industrial sectors, as well as savings from the debt restructuring undertaken earlier, said an analyst with a foreign broking firm. Another analyst said the restructuring undertaken by the company a few years ago is also yielding results now. Stockbrokers said outlook for the company is positive due to the huge export potential. "Since the company is a subsidiary of SKF Sweden, it can be used as a outsourcing base by the parent,'' said a broker.
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