• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai , Aug. 25

SHARES of Phoenix Lamps rose on Thursday on the expectation of a huge growth from the compact fluorescent lamps (CFL) and halogen automotive lamps business.

The stock price of the company rose 11.76 per cent to Rs 78.40 on the BSE with a volume of 3.26 lakh shares. On the NSE, it closed at Rs 78.45, up 12.07 per cent, with a volume of 5.67 lakh shares.

The main reason for the rise in the stock price is attributed to the good growth prospects for the company's CFLs.

"We expect CFLs to witness exponential growth and grow over 30 per cent over next few years. Being the single largest manufacturer in the organised sector, Phoenix Lamps is poised to garner a major chunk of the incremental market," Anand Rathi Securities said in a report.

As the CFL business is the main growth driver and the auto lamps segment (both original equipment manufacturer (OEM) supplies and after-sales market) is likely to see steady growth, the revenues will grow at 29 per cent and profits will grow by 61 per cent from 2005 to 2007, the firm said.

For the quarter ended June 2005, the company's net profit almost doubled to Rs 5.2 crore from Rs 2.7 crore a year ago and its sales increased to Rs 56.87 crore from Rs 46.37 crore.

The growth in the automobiles sectors, especially two-wheelers, is also seen as a major growth driver for the company in future. The increased competition in the CFL segment, which could lead to pricing pressure, will be offset to a certain extent by its stronghold in the automotive lamps segment.

"With two-wheelers led by bikes on a strong growth turf, we expect a rising contribution of halogen lamps to absorb any pricing pressure in CFLs," Anand Rathi Securities said.

In the auto lamps segment, Phoenix Lamps has a 70 per cent market share in both the OEM and the after-sales market, with the rest met through imports. In the fast growing two-wheeler segment, it has a 90 per cent market share, where margins are as high as 50-60 per cent.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mid-Day Multimedia allots pref shares to T Rowe Price

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