Financial Daily from THE HINDU group of publications
Thursday, Jun 23, 2005
Financial Daily from THE HINDU group of publications Thursday, Jun 23, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground JK Investo Trade up on value buying
THE JK Investo Trade India counter is up on higher valuations of its investments in the JK group of companies. The investment arm of the JK Group holds around 13.92 lakh shares in Raymonds, which fetches an earning per share of Rs 70. The stock on Wednesday closed at Rs 95 on the BSE, up around 4.80 per cent. JK Helene Curtis, the groups' FMCG company and a wholly-owned subsidiary of JK Investo, holds 49 per cent in JK Ansel, a condom manufacturing company. According to market sources, the JK Group is planning a brand revaluation exercise for all brands in the FMCG products and toiletries portfolio. Analysts point out that for Rs 25 (market value of Rs 95 minus investment value of Rs 70), it is a great bargain.
Real estate - a magnetic pull?
A SECTION of the investors is drawn to the Permanent Magnet stock, as it has struck a deal recently to sell its surplus real estate at Borivili in Mumbai. Though confirmation from the company officials was not available, sources close to the deal confirmed the development, and indicated that the deal would bring in a one-time extra cash ranging between Rs 15 crore and Rs 16 crore. This would mean additional earning of Rs 35-40 per share. The stock on Wednesday closed at Rs 20.80 on the BSE, down 4.59 per cent. Dealers expect that the market would be forced to correct the valuation anomaly shortly with the official confirmation.
Phased buying seen THE Essar Shipping stock, according to market sources, continues to be the target of some existing shareholders. Dealers said that a phased mopping-up has been taking place without disturbing the price much. "After the sale of its ships, available cash per share is Rs 40. The stock is hovering at the Rs 20-mark, half the price of cash EPS from the recent asset sale," an analyst said. The stock closed at Rs 29.95 on the BSE on Wednesday. Market sources pointed out that the company struck the sale deal at peak rates and was now enjoying softening of lease rentals, which it had opted for to maintain operations.
Jayanta Mallick
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