Financial Daily from THE HINDU group of publications
Tuesday, Sep 07, 2004
Financial Daily from THE HINDU group of publications Tuesday, Sep 07, 2004 |
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Markets
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Stock Markets Columns - Ear to the ground Tata Metalliks on strong fundamental
FOUNDRY grade pig iron maker Tata Metalliks Ltd strengthened on the bourses on Monday on fresh buying support. The stock ended at Rs 117.85, up 6 per cent, with around 81,150 shares traded on the BSE. Analysts maintain that the company is into fast growth trajectory. Its coke management capabilities place the company at an advantage position over competitors. In other words, it does not depend on imported coke but gets coal converted into coke locally. Tata Metalliks also plans to double capacity (3,00,000 lakh tonnes) with the commissioning of its new blast furnace in December 2004 at the cost of Rs 50 crore. It is also said to be looking at options to acquire units in the western and southern regions, after which it plans to go into forward integration of castings. Its capex plans will enable the company to cater to the export markets of the Gulf and east European countries. It will also enable reduction in cost of $15-20 per tonne.
Parent - the source of strength Reports that parent Cummins Inc is looking to make Cummins India Ltd its outsourcing hub saw the stock surge by 5.22 per cent to Rs 116 on the BSE with around 3.25 lakh shares traded. Brokers said that good June quarter numbers have reinforced investor interest at the counter. Analysts maintain that in the June quarter the capex cycle entered a productive phase. They maintain that volume growth is coming into the medium horsepower segment. On a consolidated basis the company is expected to show improved performance.
Merger talk augurs well Apart from the textile play, merger rumours have been propelling the counter of Mahavir Spinning Mills on the bourses. Word on the street is that Mahavir is to be merged with Vardhman. The two companies are currently said to be looking at synergies between themselves. Reportedly, a decision on the same is likely to be taken on September 9. The stock of Mahavir ended at Rs 212.55, up 4.91 per cent, with around 67,413 shares traded on the BSE.
Deeptha Rajkumar
More Stories on : Stock Markets | Ear to the ground
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