The Hindu Business Line : Tisco firm on number hopes

If the market talk is to be believed, the company is expected to report a net profit of around Rs 675-700 crore for the first quarter compared to Rs 338 crore (before extra ordinary item) in the corresponding quarter of last year. The profit before tax is likely to be over Rs 1,000 crore compared with Rs 472 crore last year.

The board of Tata Steel meets on Thursday for first quarter results. Some dealers said the sharp rise in net profit is possible as in the fourth quarter of 2003-04, the company reported a net profit of Rs 629 crore.

On Wednesday, the stock price of Tata Steel gained 3.54 per cent at Rs 356.55 on the BSE with volumes of 39.69 lakh shares and on the NSE, closed at Rs 356.80, up 3.68 per cent with volumes of 96.70 lakh shares.

Voyage on freight rates

THERE is some good news for shipping companies again. The international freight rates for Very Large Crude Carriers (VLCC) are on the rise again. International rate for VLCC is around $100,000 per day.

Dealers said these rates are the highest since 1994-95 in summer. Freight rates had declined in the previous quarter compared to the first quarter of this year. The firm price indicates that in next winter season the prices are likely to increase.

Based on the rise in freight rates several broking firms have started recommending stock of Great Eastern Shipping as this company has maximum number of VLCC in India.

However on Wednesday, the stock price of the company declined by 1.80 per cent at Rs 141.50 on the BSE with volumes of 2.86 lakh shares; on the NSE, it closed at Rs 141.60, down 1.73 per cent with volume of 6.29 lakh shares.

Small caps turn stars

With the Finance Minister keeping short-term capital gains tax at 10 per cent, there is huge accumulation in some small cap pharma companies. The talk is that some market operators have started accumulating the shares of these companies.

The modus operandi, according to dealers, is to jack up the stock price of these companies on back of growth in pharma sector and exit when the stock price appreciates 50-100 per cent and by paying 10 per cent tax they can earn good profits.

Some of the stocks that are on the radar of market operators includes; Medicamen Biosciences, Natural Capsule, Li-Taka Pharma, Jagson Pharma and Medi-Caps.

Virendra Verma

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