The Hindu Business Line : Zee Tele gains on DTH foray

On Tuesday, the stock gained 2.55 per cent at Rs 146.85 on the BSE with volume of 23.17 lakh shares; on the NSE, it closed at Rs 146.95, up 2.65 per cent, with volume of 34.42 lakh shares. If the market talk is to be believed, the stock is rising due to the company's foray in direct-to-home (DTH) and the response has been good. The buzz is that Zee Tele may again gain a lead in this business similar to what it had done to cable television almost a decade ago. The accumulation in the stock is also on talk of merger of ETC Networks with the company. Zee already has a majority stake in the company.

Good Q1 results likely

AFTER Tata Steel, another flagship company of Tata group Tata Motors is expected to report excellent financial results for the first quarter. The company's board is to meet on Wednesday for the results.

Dealers said the company is expected to report net profit of around Rs 272 crore to Rs 275 crore for the quarter. Tata Motors had reported net profit of Rs 100.3 crore in the corresponding quarter of last year. While for the fourth quarter of 2003-04, it reported net profit of Rs 319.7 crore.

Talk is that the next few quarters for the company would also fair well. However, on Tuesday, the stock price closed lower at Rs 413.70, down 1.19 per cent, on the BSE with volume of 19.92 lakh shares; on the NSE, it closed at Rs 414, down 1.13 per cent, with volume of 46.42 lakh shares.

Strong cash flow

PIG iron company Sesa Goa is likely to report good financial performance in the current fiscal. Dealers said the cash flow of the company from its pig iron is around Rs 15 crore per month, and from metallurgical coke around Rs 8 crore per month.

Based on this, the market expects the first quarter of the company to have excellent financial results. The market is expecting the net profit in the first quarter to be around Rs 80 crore compared to Rs 17.5 crore in the corresponding quarter of last year.

Despite good results, the stock price was down by 0.65 per cent at Rs 455.10 on the BSE with volume of 1.93 lakh shares, and, on the NSE, it closed at Rs 454.40, down 0.82 per cent with volume of 6.03 lakh shares.

Virendra Verma

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