The Hindu Business Line : Opal Ind up on turnaround hopes

THE counter of Opal Industries, which is into power cables business, wired in a decent gain of 10.86 per cent on the BSE on a traded volume of 4.76 lakh shares.

According to market sources, the company, which is already on a turnaround path, has bagged fresh orders of Rs 30 crore. According to the management, a substantial recovery of past dues from SEBs and improved profitability have already wiped out the losses.

The promoters are also increasing their stake significantly through the preferential allotment route. However, the price has not yet been fixed for such allotment. The current holding of the promoters is 18.16 per cent, while the public holding is placed at 69.30 per cent.

The company has planned expansion projects worth Rs 25 crore to cope up with the vastly improving order flow and value addition for exports market. The management has projected a book value appreciation to Rs 17 at the end of the current fiscal from Rs 11 as on March 31, 2005. In the last one week, the stock has moved up by around 24 per cent.

Orissa Sponge: Strong undercurrent seen

THE Orissa Sponge Iron stock was active on Thursday on the BSE with a traded quantity of 1.09 lakh shares. Though the stock was down 4.58 per cent, according dealers, an undercurrent of buying was witnessed as a section of players was reportedly seen mopping it up for improvement in fundamentals, while some booked profits.

On Wednesday, the stock had scaled its new 52-week high at Rs 67.50. Firm sponge iron and ore prices (company has mining rights too) are good news for Orissa Sponge. But more importantly, the company is viewed as a potential takeover target in the context of increasing interests in Indian steel capacities, said a market source. Two of the promoters, Torsteel Foundation in India and TRFI Investment (P) Ltd, have already moved ahead to acquire around 12 lakh additional shares to increase stake through preferential allotment. The first nine month annualised cash earning per share has been Rs 15. At a market price of Rs 62, this is a steal, a market analyst quipped.

Weizmann betting on property deal

The Weizmann Ltd counter is in the buzz because of an expected windfall gain through a property sale deal. The stock closed at the 5 per cent upper circuit on Thursday on the BSE. In a week, it has gained by 27.14 per cent and in the past one month the gain is 46.77 per cent. According to market talk, the company is in negotiations with some intending purchasers for properties said to be worth around Rs 150 crore. The company's 2003-04 turnover was around Rs 60 crore, of which, Rs 6 crore had come from property lease rentals.

The fabric maker is also drawing market's attention because of improving Indian textiles play.

Jayanta Mallick

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