Cement, steel, RIL pull Sensex out of mire
Volatility on the bourses refuses to fade today. The Sensex staged a solid rebound from the lower level in late trading after having tumbled near 250 points by mid-afternoon. The rebound came about as cement shares firmed up again in late trading. Auto and banking shares also firmed up, while index heavyweight, Reliance Industries (RIL), staged a remarkable intra-day recovery.
Railway Minister Lalu Prasad on Monday announced a 5% cut in freight transportation rates for diesel and petrol and a 6% reduction in all minerals, including for iron ores and limestone. The lowering of freight rates is part of the rationalisation of tariffs announced by the minister even as he refrained from announcing any across the board increase in freight rates.
Lalu Yadav also introduced a commodity-based tariff policy, which will take effect from 1 April 2007, on an experimental basis for major commodities to provide a stronger base to the Railways' competitive capabilities. "We will introduce this new policy through an exclusive package for cement," he said.
At 15:12 IST the Sensex was down just 11 points, at 13,621. It had come off the lower level, a fall of 248.65 points to 13,383.88, by 14:15 IST.
Sesa Goa benefits as iron ore transportation to get cheaper
Iron ore exporter Sesa Goa surged 4.40% to Rs 1966.80, after the announcement of a 6% cut in rate for transportation of iron ore.Railway Minister Lalu Prasad Yadav informed about the development while presenting his Railway Budget in Parliament.
For the third quarter ended December 2006, the cost for inland transportation increased (as percentage of sales net of stock adjustment) by 210 basis points to 19.60%.
As many as 2.72 lakh shares were traded in the counter on the BSE.The Sesa Goa scrip has been bullish since late-December 2006. From Rs 1186.35 on 20 December 2006, it surged to Rs 1946.55 by 29 January 2007, only to slip to Rs 1883.90 by 23 February 2007.
At the current market price of Rs 1966.80, Sesa Goa trades at 10.15 times its Q3 December 2006 annualized EPS of Rs 193.67.Recently, Sesa Goa increased the prices of all grades of iron ore for its Japanese customers for FY-2007/08. The decision was taken in the wake of Japanese Steel Mills accepting an increase in the price of Australian iron ore for the year 2007-08.
Sesa Goa had been planning to start negotiations on annual price contracts with major global customers in February 2007. Reports in early-January 2007 had then speculated that Sesa Goa was likely to ask for a 9.5% increase in iron ore prices on annual supply contracts.
It may be recalled that Brazil's CVRD, the world's biggest iron ore producer, had in December 2006, struck an agreement with Chinese steel mills for a 9.5% upward benchmark (iron ore fines) price revision for 2007-08 (April-March). The ore price had increased by 18% in 2004-05 and a record hike of 71% was extracted by exporters from steelmakers for 2005-06.
As per reports in early-February, Anglo American, the world's second largest mining and natural resources company, had submitted its bid with five others for Mitsui’s 51% stake in Sesa Goa. It was also reported that steel giants Arcelor-Mittal and Rio Tinto had bid at over Rs 2,100 per share for Mitsui Corp's 51% stake in Sesa Goa.
Sesa Goa supplies iron ore to China, Japan and Europe, and is also the sole supplier of ore to Pakistan Steel Mill, Pakistan’s only steel manufacturing unit. The company’s annual exports amount to around 5 million tonnes out of Marmagao, Chennai and Paradip ports.
Sesa Goa reported a net profit growth of 23% to Rs 194.94 crore for Q3 December 2006, versus Rs 157.85 crore in Q3 December 2005. Net sales for the quarter rose 15% to Rs 587.89 crore (Rs 510.37 crore).
Rayban Sun Optics India jumps
Rayban Sun Optics India 3.20% to Rs 88.90, after it received a proposal from Italy's Luxottica to set up wholly-owned subsidiaries in India.The Rayban Sun Optics India (Rayban) stock had clocked 4.46 lakh shares on BSE.The Rayban stock slipped ahead of its results in the past few days. From Rs 96.35 on 19 February 2007, it slipped to Rs 91.80 by 23 February 2007.
Rayban Sun Optics India informed BSE that its board of directors received a proposal from Luxottica Group S.p.A, Italy, (Luxottica) indicating their intention to set up wholly-owned subsidiaries in India for wholesale distribution of various luxury & fashion brands in the eyewear industry, including the distribution of spectacle frames and sunglasses. Luxottica Group S.p.A, has requested a no-objection certificate from the company for this purpose.
The proposal indicates that subject to setting up of a wholly-owned subsidiary in India for undertaking wholesale cash-and-carry business in luxury & fashion eyewear other than the RayBan brand, Luxottica proposes to grant a five-year exclusive license for manufacturing and distributing frames and sunglasses under the trademark 'RayBan'.
For Q4 December 2006, Rayban Sun Optics India registered an 8.30% fall in net profit to Rs 3.33 crore compared to Rs 3.63 crore in Q4 December 2005. Net sales for the quarter ended December 2006 rose 18.30% to Rs 17.21 crore (Rs 14.55 crore).
However, for FY ended December 2006, Rayban’s net profit rose 17.60% to Rs 11.94 crore compared to Rs 10.15 crore during FY ended December 2005. Net sales for FY-2006 rose 29.30% to Rs 62.98 crore (Rs 48.71 crore).
Ray-Ban commands nearly 50% of the Rs 150 crore eyecare market in India.
Luxottica gained control over 44% stake in Rayban through a 1999 takeover of Bausch & Lomb of the US. However, it did not follow up the takeover with an open offer. However, after the intervention of Sebi, Luxottica had made an open offer to the shareholders for acquiring 20% stake in the company at Rs 104.30 per share.
The Italy-based eyewear giant, Luxottica, is a global leader in premium eyeglass frames and owns several well-known brands such as Giorgio Armani, Ferragamo and Vogue.
As on December 2006, public and institutions held 40% and 5% stake in the company, respectively, while promoters held 44% stake.
Railway Minister Lalu Prasad on Monday announced a 5% cut in freight transportation rates for diesel and petrol and a 6% reduction in all minerals, including for iron ores and limestone. The lowering of freight rates is part of the rationalisation of tariffs announced by the minister even as he refrained from announcing any across the board increase in freight rates.
Lalu Yadav also introduced a commodity-based tariff policy, which will take effect from 1 April 2007, on an experimental basis for major commodities to provide a stronger base to the Railways' competitive capabilities. "We will introduce this new policy through an exclusive package for cement," he said.
At 15:12 IST the Sensex was down just 11 points, at 13,621. It had come off the lower level, a fall of 248.65 points to 13,383.88, by 14:15 IST.
Sesa Goa benefits as iron ore transportation to get cheaper
Iron ore exporter Sesa Goa surged 4.40% to Rs 1966.80, after the announcement of a 6% cut in rate for transportation of iron ore.Railway Minister Lalu Prasad Yadav informed about the development while presenting his Railway Budget in Parliament.
For the third quarter ended December 2006, the cost for inland transportation increased (as percentage of sales net of stock adjustment) by 210 basis points to 19.60%.
As many as 2.72 lakh shares were traded in the counter on the BSE.The Sesa Goa scrip has been bullish since late-December 2006. From Rs 1186.35 on 20 December 2006, it surged to Rs 1946.55 by 29 January 2007, only to slip to Rs 1883.90 by 23 February 2007.
At the current market price of Rs 1966.80, Sesa Goa trades at 10.15 times its Q3 December 2006 annualized EPS of Rs 193.67.Recently, Sesa Goa increased the prices of all grades of iron ore for its Japanese customers for FY-2007/08. The decision was taken in the wake of Japanese Steel Mills accepting an increase in the price of Australian iron ore for the year 2007-08.
Sesa Goa had been planning to start negotiations on annual price contracts with major global customers in February 2007. Reports in early-January 2007 had then speculated that Sesa Goa was likely to ask for a 9.5% increase in iron ore prices on annual supply contracts.
It may be recalled that Brazil's CVRD, the world's biggest iron ore producer, had in December 2006, struck an agreement with Chinese steel mills for a 9.5% upward benchmark (iron ore fines) price revision for 2007-08 (April-March). The ore price had increased by 18% in 2004-05 and a record hike of 71% was extracted by exporters from steelmakers for 2005-06.
As per reports in early-February, Anglo American, the world's second largest mining and natural resources company, had submitted its bid with five others for Mitsui’s 51% stake in Sesa Goa. It was also reported that steel giants Arcelor-Mittal and Rio Tinto had bid at over Rs 2,100 per share for Mitsui Corp's 51% stake in Sesa Goa.
Sesa Goa supplies iron ore to China, Japan and Europe, and is also the sole supplier of ore to Pakistan Steel Mill, Pakistan’s only steel manufacturing unit. The company’s annual exports amount to around 5 million tonnes out of Marmagao, Chennai and Paradip ports.
Sesa Goa reported a net profit growth of 23% to Rs 194.94 crore for Q3 December 2006, versus Rs 157.85 crore in Q3 December 2005. Net sales for the quarter rose 15% to Rs 587.89 crore (Rs 510.37 crore).
Rayban Sun Optics India jumps
Rayban Sun Optics India 3.20% to Rs 88.90, after it received a proposal from Italy's Luxottica to set up wholly-owned subsidiaries in India.The Rayban Sun Optics India (Rayban) stock had clocked 4.46 lakh shares on BSE.The Rayban stock slipped ahead of its results in the past few days. From Rs 96.35 on 19 February 2007, it slipped to Rs 91.80 by 23 February 2007.
Rayban Sun Optics India informed BSE that its board of directors received a proposal from Luxottica Group S.p.A, Italy, (Luxottica) indicating their intention to set up wholly-owned subsidiaries in India for wholesale distribution of various luxury & fashion brands in the eyewear industry, including the distribution of spectacle frames and sunglasses. Luxottica Group S.p.A, has requested a no-objection certificate from the company for this purpose.
The proposal indicates that subject to setting up of a wholly-owned subsidiary in India for undertaking wholesale cash-and-carry business in luxury & fashion eyewear other than the RayBan brand, Luxottica proposes to grant a five-year exclusive license for manufacturing and distributing frames and sunglasses under the trademark 'RayBan'.
For Q4 December 2006, Rayban Sun Optics India registered an 8.30% fall in net profit to Rs 3.33 crore compared to Rs 3.63 crore in Q4 December 2005. Net sales for the quarter ended December 2006 rose 18.30% to Rs 17.21 crore (Rs 14.55 crore).
However, for FY ended December 2006, Rayban’s net profit rose 17.60% to Rs 11.94 crore compared to Rs 10.15 crore during FY ended December 2005. Net sales for FY-2006 rose 29.30% to Rs 62.98 crore (Rs 48.71 crore).
Ray-Ban commands nearly 50% of the Rs 150 crore eyecare market in India.
Luxottica gained control over 44% stake in Rayban through a 1999 takeover of Bausch & Lomb of the US. However, it did not follow up the takeover with an open offer. However, after the intervention of Sebi, Luxottica had made an open offer to the shareholders for acquiring 20% stake in the company at Rs 104.30 per share.
The Italy-based eyewear giant, Luxottica, is a global leader in premium eyeglass frames and owns several well-known brands such as Giorgio Armani, Ferragamo and Vogue.
As on December 2006, public and institutions held 40% and 5% stake in the company, respectively, while promoters held 44% stake.
Labels: Rayban Sun Optics India, Sesa Goa
posted by SY at 4:17 PM
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