The Hindu Business Line : Block deal in Jayaswal Neco

THE stock of the Nagpur-based iron and steel foundry company Jayaswal Neco topped the volume chart of the B2-group on the BSE on Wednesday with around 66.75 lakh shares traded.

The stock, which was also trading at circuit, was witness to several large bulk deals. One of the largest sellerswas ICICI Bank Ltd, which sold around 22.64 lakh shares. As on September 30, 2004, ICICI Bank had held around 50.32 lakh shares, amounting to 11.77 per cent equity of the company.

Analysts maintain that the company, which had in the past been making losses, has started making operating profits. Sources said that the company had recently undertaken a debt restructuring exercise. There is also talk of an export story at play here.

Formerly known as Nagpur Engineering Company, Jayaswals Neco manufactures finished castings for automobile, engineering and construction industries in addition to cast/ductile iron pipes and pipe fittings. The company has also diversified into industrial valves, infrastructure products, valve castings, food products, ceramics, ferro alloys, pig iron and steel.

The stock ended at Rs 16.85, up 10.71 per cent, on the BSE. On the NSE, the stock ended at Rs 16.90, up 13.42 per cent, with around 32.92 lakh shares traded. The stock has appreciated by almost 14 per cent since October 20 and around 53 per cent over the last one month.

Gains on fundamentals

Good fundamentals is said to be the key factor spurring market interest in Kirloskar Ferrous Industries Ltd. The company, which manufactures pig iron and ferrous castings, had taken a hit in the first quarter on account of rising coke prices. However, there has since been a significant turnaround in sentiment, given the company's strong order book. The company, which is already running at full capacity is said to be going in for capex.

Going forward its castings business is expected to propel revenue growth.

Dealers, however, maintain that the current interest in the stock is on account of a prominent fund, holding a significant amount of the company's share, looking for an exit route. The stock ended at Rs 25.55, up 5.36 per cent, with 2.52 lakh shares traded on the BSE.

Bull in charge

Rumours of a leading bull operator looking to acquire a stake in the company have been keeping interest in Visaka Industries Ltd.

The company manufactures fibre cement products and synthetic blended yarn.

Dealers expect the stock to go through a brief correction, as the run up at this counter has been too fast, too soon.

The stock ended at Rs 90.25 with 4,108 shares traded on the BSE. On the NSE, the stock ended at Rs 91 with 1.25 lakh shares traded.

Deeptha Rajkumar

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