Financial Daily from THE HINDU group of publications
Friday, Dec 10, 2004
Financial Daily from THE HINDU group of publications Friday, Dec 10, 2004 |
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Markets
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Stock Markets Columns - Ear to the ground Gains on parental strength
THE stock of Majestic Auto Ltd has gained by almost 33 per cent from around Rs 70.45 levels to its current levels of Rs 93.65, post restructuring on the bourses. The stock, which was delisted in the last week of September 2004, was relisted on the BSE on December 6. A Hero group concern, the counter has been gaining ground on the perception that an investor buying into Majestic Auto is also entitled to the unrealised value of Hero Honda Motors Ltd (HHML) holding. According to analysts, Majestic holds 16.25 lakh shares of HHML, which at current market value, is worth Rs 77.18 crore. This in effect means that an MAL investor is indirectly enjoying a sizeable equity exposure in HHML at an average price of Rs 74 per share. Analysts reason that while a potential sell-off of this equity is unlikely, MAL would continue to benefit immensely from large dividend payouts from HHML which are entirely tax free. The stock of Majestic Auto hit a 52-week high on Thursday at Rs 93.65, up 9.98 per cent over its previous close on the BSE.
Pushed by revamp talk Rumours of the company going in for restructuring have been propelling the counter of Tata Finance in the recent past. There is speculation in the market over the likelihood of Tata Finance being merged with Tata Investment Corporation of India. The former, however, did come in for some amount of profit-booking on Thursday. As on September 30, 2004, Tata Sons hold a 31.75-per cent stake in Tata Investment and a 30.18-per cent stake in Tata Finance. While the stock of Tata Investment ended the day at Rs 261.85 (up 0.91 per cent) , Tata Finance ended at Rs 51.40 (down 2.28 per cent) on the BSE.
Peaks on joint venture hopes The counters of both Ind Swift Laboratories and Ind Swift Ltd hit new 52-week high's on the bourses on Thursday. Brokers said that rumours of Ind Swift Laboratories being close to inking its European joint venture (to manufacture APIs) by December-end have been fuelling interest in the counter. Ind Swift Ltd has a 14.46 per cent stake in Ind Swift Laboratories. Over the past two months, FIIs such as Swiss Finance Corporation of the UBS Group, Arisaig Partners of Singapore, Lloyd George Management of Hong Kong and a few others have picked up almost 20 per cent of the company's equity. The stock of Ind Swift Laboratories hit a 52-week high at Rs 244.30, up 4.98 per cent over its previous close on the BSE. Ind Swift Ltd hit a new 52-week high at Rs 323.60, up 9.99 per cent on the BSE.
Deeptha Rajkumar
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