The Hindu Business Line : Navin Fluorine hits circuit on order talk

THE Navin Fluorine stock on Monday spurted on unconfirmed news that the company has finally struck a carbon trading deal, which will balloon the annual earnings.

According market sources, the deal is understood to have paved way for an annual earning for the company of Rs 70 crore for 10 years. It is being said that Navin could clinch a better deal than Gujarat Flurochemicals, which has reported a carbon trading pact.

If translated in terms of heard number, there will be an additional earning per share Rs 70 per share over the current EPS of Rs 30.

At the current price of around Rs 200, on a paid-up capital of Rs 10 crore, the P/E multiple works out to 2.

After factoring in the new development, P/E multiples are expected to jump manifold. Today the stock hit the circuit breaker.

Siyaram up on FCCB premium hopes

The Siyaram Silk Mills counter made a smart upward move to scale a new peak at Rs 154. The stock finally closed at 143.35, up 8.80 per cent on a traded volume of 51,617 shares on the BSE.

The buzz in the stock was that the company was looking into the possibility of raising funds through FCCBs at a substantially higher conversion price than the current market value.

Dealers said the steady movement in the counter is perceptible in the last few weeks.

The valuation of the silk fabric and branded shirt manufacturer is compelling, considering its fundamentals. However, if the promoters can fetch an aggressively higher total enterprise valuation, thought to be close to one-to-one its sales figure, then the market valuation has a lot to catch up with, according to an industry insider.

Promoters currently hold around 66.47 per cent, while public holding is placed at 26.63 per cent of the total paid-up capital of Rs 6.25 crore.

Hotline Glass gaining on revamp moves

THE Hotline Glass stock is having a smooth journey north on the bourse with decent volumes as the Street talked about restructuring of its business.

Market sources aver the company is said to be planning to make one unlisted group company - Hotline Colour Picture Tube - its subsidiary.

It is not only business synergy, but higher turnover and profitability is expected to drive up the Hotline Glass' valuation, which manufactures glass shell for TVs, a market insider said.

Hotline Glass currently holds a 30 per cent stake in the unlisted entity.

The turnover of the would-be subsidiary, according to the market grapevine, is 10 times that of the Hotline Glass and the profits are also better than that of the listed entity.

Jayanta Mallick

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