The Hindu Business Line : Ingersoll-Rand turns active on BSE

THE otherwise sleepy counter of Ingersoll-Rand India on Thursday witnessed two block deals on the Bombay Stock Exchange. Reliance Capital Prima Fund picked up 2.08 lakh shares at Rs 210 each. This amounts to around 0.45 per cent of the total paid up capital of the company.

On the other hand, Templeton Mutual Fund managed to sell a total of 2.17 lakh shares at Rs 210 each. As on March 31, the mutual funds held around 4.56 per stake in Ingersoll Rand, with Indian public holding 16.22 per cent and the foreign promoters 74 per cent.

The trading volume on the National Stock Exchange, however, did not reflect any increase in activity. Nevertheless, 73.5 per cent of the total traded quantity was placed for delivery on NSE.

According to market analysts, the stock is not cheap at today's closing price, which was down 2.3 per cent at Rs 209.25. Its P/E multiple stands at 17.4 over the expected earnings per share of Rs 12.

As a part of global agreement, the drilling solutions business of Ingersoll-Rand (India) is to be transferred to Atlas Copco (India). Analysts feel that the contribution of the drilling business has not been very substantial, and the transfer would impact the balance sheet in a negative way.

The road construction equipment business of the company, however, needed to be watched in relation to the progress in the national highways project, a stock analyst pointed out.

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