Financial Daily from THE HINDU group of publications
Saturday, Jun 04, 2005
Financial Daily from THE HINDU group of publications Saturday, Jun 04, 2005 |
|
|
|
|
|
Markets
-
Stock Markets Munjal Auto's four-wheeler foray buzz perks up stock Jayanta Mallick
Kolkata , June 3 MARKET has got wind of the fact that Munjal Auto, a leading two-wheeler forgings maker, is making a foray into the four-wheeler forging segment in a big way. The stock today moved up by 6.41 per cent to close at Rs 161.75, the day's high with nearly double its 2-week average and three times yesterday's traded quantity on the BSE. Sources confirmed to Business Line that the company was in talks with General Motors and Ford for four-wheeler forgings. The company is expected to announce the development shortly. Its 2004-05 result, which is expected to be declared tomorrow, has also aroused market expectation of a better topline and bottomline growth on the basis of a steady growth in the overall automotive sector. According to a fund manager, "This is another Bharat Forge in the making". Some auto stock analysts felt that the company's entry into the four-wheeler segment is expected to yield a CAGR of at least 35 per cent for the next three to four years. Mr Nandish Shah of Anagram Stockbroking felt that the recent softening of iron and steel prices would be beneficial for the company in terms of input costs. Recent developments also suggest that the company is reducing its dependence domestic market and two-wheeler clients. The market is expecting a net profit of Rs 26 crore for 2004-05 against Rs 19.75 crore in the previous fiscal. In the first nine months, the stock achieved an EPS of Rs 9.5. Its relatively small floating stock restricts depth in the counter, market sources point out. Promoters hold 76.80 per cent of the Rs 20 crore paid up capital, while public holding is placed at 13.18 per cent and MFs 5.40 per cent.
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
|