Financial Daily from THE HINDU group of publications
Friday, Dec 31, 2004
Financial Daily from THE HINDU group of publications Friday, Dec 31, 2004 |
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Markets
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Stock Markets Columns - Ear to the ground Denso India piggybacks on auto boom
THE counter of auto ancillary Denso India ruled firm on the bourses on Thursday in an otherwise volatile market. Increased growth outlook by analysts has infused an element of optimism at the counter. Brokers maintain that the stock is quoting at a discount to a broad range of auto ancillaries. Strong fundamentals apart, Denso is expected to be the key beneficiary of widening footprint of Japanese auto manufacturers in India. The company is also expected to gain market share and derive accelerated growth on the back of growing sales of its leading clients such as Maruti and Hero Honda. The latter provide 65-70 per cent of Denso's turnover. Long-term growth oppurtunities are expected to be provided via the aggressive expansion plans of manufacturers Toyota Kirloskar, Honda Motorcycles, Suzuki etc. Denso India specialises in auto electricals providing alternators and starter motors for three-wheelers and CDI and magneto for two-wheelers. The stock ended at Rs 73.15, up 6.55 per cent, with around 82,443 shares traded on the BSE.
Order book to its defence The counter of Avantal Softech may have ended in negative territory in line with the broad market trend, but analysts are optimistic over its future growth. It is said to have a strong order book and has also recently bid for further orders from the defence in competition with BEL. The company, which has built its core competency in the communication field, is also reportedly in talks with Nokia to supply tailor made software to strengthen its signals. The stock ended at Rs 40.50(BSE).
On profit hopes Touted as an inexpensive stock that offers a dividend yield of 5 per cent, the counter of Colgate Palmolive is back on the market radar after a sluggish spell. According to analysts tracking the company, the sharp rebound in the oral care segment, containment of low priced competition, efficiency gains in operations and declines in ad-spend have led to a sharp improvement in profitability for the company. The stock ended the day relatively firm at Rs 179.55(BSE) and Rs 180.75(NSE).
Deeptha Rajkumar
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