Financial Daily from THE HINDU group of publications
Friday, Mar 04, 2005
Financial Daily from THE HINDU group of publications Friday, Mar 04, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground Indsil Electro gains on strong fundamentals
THE counter of smelting company Indsil Electro Smelts is on the buy list of select market players. Dealers said the buying in the counter is on account of strong financial performance of the company in the current fiscal. It has reported net profit of Rs 7.35 crore for the first six months (June-December) of the current fiscal. The company has July-June fiscal. On this net profit, the EPS works out to Rs 7.77. The talk is that, for the full year, EPS would be more than Rs 15. Good performance is mainly due to strong demand for steel, where its services are used. On Thursday, the stock price of the company was locked in 10 per cent upper circuit at Rs 69.25 on the BSE with volume of 1.90 lakh shares.
Eveready Ind charged ahead of de-merger
JUST ahead of the de-merger of the tea and battery businesses, several market players have started buying the shares of Eveready Industries. Dealers said the company has finally decided the exchange ratio of shares for the de-merger. The talk is that active buying in the counter is due to two factors. The battery business of the company has started doing well and it also has strong brand equity. Secondly, tea industry has come out of recession and this business would also show strong growth. The grapevine is that after the de-merger and when both the businesses (tea and battery) are listed, they would have much higher valuation than the current market price of the company. On Thursday, the stock gained 9.13 per cent at Rs 81.85 on the BSE with volume of 16.18 lakh shares and on the NSE it closed at Rs 81.85, up 9.35 per cent, with volume of 29.79 lakh shares.
Propelled by domestic funds AFTER FIIs, it is the turn of local institutional investors to put the stock market on fire. Dealers said several mutual funds, which have recently closed their various schemes and which were sitting on cash for investing after the Budget, bought large quantity of shares on Thursday. The market buzz is that several funds bought small quantity and more buying is expected in the next few days, as the funds have to deploy the cash soon. Apart from frontline stocks, the funds are likely to make purchases in mid-cap stocks as most of the fresh money has come to mid-cap schemes.
Virendra Verma
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