The Hindu Business Line : Buzz on nos spurs buying

Dealers said the net profit of the company in the first quarter is expected around Rs 6.25 crore compared to Rs 3.08 crore in the corresponding quarter last year. Based on the first quarter earning the EPS of the company would be around Rs 5.5 for Rs 5 paid-up share.

The talks are that this strong financial performance of the company is likely to continue in the remaining part of the current fiscal. The board of the company is meeting on Monday for the first quarter results. Several market players have already bought shares of the company on Friday. The stock closed at Rs 119.15, up 4.79 per cent, on the BSE with volume of 1.55 lakh shares and on the NSE it closed at Rs 118.85, up 6.07 per cent, with volume of 1.36 lakh shares.

Advance tax under scanner

WITH financial results season mid-way, several market players have started looking at advance tax payments by them in order to project their financial results.

If the market talks are to be believed, some of the big companies have paid higher advance tax for the quarter ended June 2004. This indicates strong financial performance for these companies to continue in the current fiscal.

Among the companies to pay high advance tax include Tata Steel. The company is understood to have paid tax of around Rs 150-155 crore compared to Rs 80 crore in the corresponding quarter of last year.

Another steel company Jindal Iron and Steel paid tax of Rs 13 crore compared to Rs 4 crore last year. Cipla has paid Rs 14 crore tax as against Rs 7.25 crore last year.

ICICI Bank is also understood to have paid Rs 100 crore as tax compared to Rs 30 crore last year. Based on the advance tax payment by these companies, several market players have built large positions in these stocks. These companies are scheduled to announce their quarter results in the next 10 days. Tata Steel is to announce its results on July 22, Cipla and ICICI Bank on July 23 and Jindal Iron on July 27.

On Friday, the stock price of Tata Steel closed at Rs 338.65, up 3.56 per cent on the BSE, Cipla was up 1.08 per cent at Rs 233.65, Jindal Iron gained 2.69 per cent at Rs 228.65 and ICICI Bank closed at Rs 245, up 2.70 per cent.

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