The Hindu Business Line : Still its debt could be a factor

Atul Ltd, a Lalbhai group outfit, which has sold off 10 lakh shares out of its total holding of around 13.22 lakh shares in Ciba Speciality Chemicals to Templeton early this week, would use the proceeds of around Rs 55 crore to repay its debts.

This was the official response from the company to queries from Business Line. However, there was no word on the remaining stake in Ciba Speciality Chemicals.

Atul's interest costs have been a drag on the company's profitability. In the quarter to September 30, 2005, the company paid out Rs 7.18 crore by way of interest, while its PAT was Rs 4.76 crore. In 2004-05, its interest cost was Rs 21.79 crore.

The company has been selling investments, but, according to market sources, it would require larger funds to reduce interest cost further.

The stock closed at Rs 112.40 on Thursday, marginally down from Wednesday's closing.

Upbeat on split, bonus talk

Is Solvay Pharma going the same way as Torrent Pharma? According to market grapevine, the stock may be split and a bonus issue may be expected in the next six months.

No confirmation, however, could be had on such talk.

The stock closed firm at Rs 531, up about one per cent, in a weak market.

Betting on growth prospects

Kovai Medical, which has recently declared an interim dividend, is inching up on hopes of higher profitability this fiscal mainly because of additions to its facility at its Kerala hospitals.

According to market sources, the stock is receiving some attention for its low P/E among the hospital stocks.

On the basis of 2005-06 expected earnings, the stock is fetching a P/E of around 7. The stock finished at Rs 56.75, up around 1.34 per cent.

Jayanta Mallick

More Stories on : Stock Markets | Ear to the ground

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