The Hindu Business Line : Sundram Fasteners up on acquisition talk

SUNDRAM Fasteners saw vigorous activity on Monday, with more than four lakh shares changing hands. The price of the Re 1 share rose by 11 per cent to close at Rs 121.40 on the NSE. On the BSE, the stock closed at Rs 123.25 with 58,859 shares being traded.

It is learnt that the company is on the verge of another acquisition — this time a company in the US. (Sundram Fasteners acquired Cramlington Precision Forge of the UK in 2003.) The market grapevine has it that it is going to be a much larger acquisition this time.

The Sundram Fasteners Chairman and Managing Director, Mr Suresh Krishna, has said on many occasions that the company was open to acquisitions, should an opportunity arise.

Austin Engg gains on prospects

AUSTIN Engineering, a company which is into the manufacture of ball bearings, has been on an upward move in the last one week.

Even on Monday, the stock was locked in 20 per cent upper circuit. It closed at Rs 47.50 on the BSE with volumes of 63,292 shares. In the last one week, the stock has gained 46 per cent.

Dealers said the rise in the stock price is on the back of good performance the company is likely to show in the fourth quarter of 2004-05 and also in the current fiscal.

In the first nine months of 2004-05, it reported EPS of Rs 2.83 compared with EPS of Rs 1.68 for 2003-04.

The talk is that the EPS for January-March quarter would be higher than reported in earlier quarters. Moreover, the uptrend seen in engineering and auto sector is seen as positive for the company where its products find use.

Nesco jumps on property buzz

WITH the real estate and construction sector opening up for FDI, a stock that is buzzing on this development is Nesco. It has huge real estate in North Mumbai.

Market talk is that Nesco is one of the possible cases where a foreign investor would like to pick stake because of the huge land it owns. Dealers said this company has one of the largest lands at a single place in Mumbai.

Several market players aware of this development are slowly accumulating the stock. Due to low liquidity in the stock even a small purchase pushes the stock price up. In the last one week, the stock has already gained 20 per cent. On Monday, the stock gained 5 per cent at Rs 442.15 on the BSE with volumes of 3,853 shares.

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