The Hindu Business Line : Block deals in Vesuvius

UTI today sold two lakh Vesuvius India shares at a weighted average price Rs 124 on the Bombay Stock Exchange. According to the company's shareholding pattern as on March 31, 2004, administrator of the specified undertaking of UTI asset management had 8.89 per cent stake in Vesuvius.

BSE account further showed that there was one block deal at 12.59 p.m. of 1,23,500 shares at Rs 124 a share and two block deals involving one lakh shares at Rs 123.50 at 1.13 p.m.

As a result, the counter had a significant volume increase on the BSE. The stock, however, did not see much jump in its price. It gained just by 1.42 per cent. The counter also did not have much volume on the NSE.

As a supplier of refractories to steelmakers, Vesuvius has already been riding the cyclical upswing in the global steel industry. In the last one year, its stock price has increased by 101.5 per cent. The management is also planning to more than double its capacity within the next 2 years.

The company saw a 27-per cent rise in turnover in 2003 over 2002. Some 10 per cent of the revenue came from exports.

Mr B. Gupta, MD of the company, suggested at the company's AGM this week that Vesuvius may consider splitting its stock to ensure liquidity.

According to Mr Devarsh Vakil of Anagram Stockbroking, Vesuvius was a debt-free company with a track record of steady return of over 20 per cent and strong parentage (Cookson Group of UK). . At today's price of Rs 125, it traded at 12 times its 2003-04 earnings of Rs 10.2 per share.