Financial Daily from THE HINDU group of publications
Friday, Jun 03, 2005
Financial Daily from THE HINDU group of publications Friday, Jun 03, 2005 |
|
|
|
|
|
Markets
-
Stock Markets Columns - Ear to the ground Siyaram gains on bonus talk
THE Siyaram Silk Mill stock is on a flight this time on an expectation of a bonus issue, according to market sources. The counter on Thursday weaved its new 52-week high at Rs 170.70 and closed at Rs 161.05, up 2.48 per cent on the BSE with a 50 per cent jump in traded quantity. The stock is seen as accumulation target of existing shareholders. Market sources pointed out that the stock's market capitalisation is about one third of its annual sales figure of Rs 302.09 crore for 2004-05. It has achieved an EPS of Rs 13.51 for the whole year and the 04-05 last quarter EPS of around Rs 7. At a low equity base of Rs 6.25 crore, a decent dividend of 40 per cent and cash earning of Rs 35 per share, the stock appears a compelling bet, some analysts observed. "It is one of the very few undervalued textile stocks with a reasonably strong growth prospects," a fund manager commented.
DCM betting on growth prospects The Street expectation over the DCM Shriram stock revolves around the completion of its debt restructuring plan soon. The counter posted a gain of around on per cent at Rs 82.85 on a traded quantity of 1.05 lakh shares on the BSE. According to market sources, the substantial interest cost reduction would buoy up the bottomline of this sugar, tyre cord and chemicals manufacturing company. The company during 2004-05 reported a total interest burden of Rs 26.78 crore, while the net profit was placed at Rs 16.50 crore on a total sales figure of Rs 519.87 crore. The current market price is attractive in view of the market capitalisation of under Rs 100 crore against the turnover. The company has a high cash profit. All industries in which the company is present are also on an upcycle. According to some smart investors, who have been accumulating the stock in the recent weeks, the profitability is likely to go up swiftly after the interest burden comes down.
Automotive Stampigs hoping on better margins AUTOMOTIVE Stampigs & Assemblies, a Tata group company, is understood to be poised for a substantially upward price revision from its dominant client Tata Motors. According to market sources, the company's 60 to 70 per cent turnover comes from the Tata Motors orders. It is said to be aggressively pitching also for overseas markets and exports. Sources familiar with the development said the Rs 291.82 crore-company, formerly known as JBM Tools, could negotiate a better quarterly price deal and achieve better margins in view of softening steel and its input costs. The stock closed at Rs 91.50, marginally down. But, market sources maintained that it is a subject of a slow mopping up by a section of market players in view of very low non-promoter holding of 18.65 per cent. The company has completed its 50 per cent capacity expansion in the last fiscal. Considering the boom in auto components, the turnover is expected to move up by at least 50 per cent in the current fiscal, an analyst said. The company has also come back to the dividend list for 2004-05.
Jayanta Mallick
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|