Sensex fights back; wee-bit into positive
The BSE Sensex staged a recovery from the day's low (14,157.72), as buying resumed in index pivotals.At 11:37 IST the Sensex was up 1 point, at 14,253. It had surged to a high of 14,307.53 in opening trade.
The market-breadth, which was positive at the onset of trading, turned negative later. For 1,227 shares declining on BSE, 1021 rose. Just 70 shares were unchanged.The BSE clocked a turnover of Rs 1348 crore.Among the 30-Sensex pack, 16 advanced while the rest declined.Satyam Computers was the top loser, down 1.74% to Rs 469, on a volume of 1.30 lakh shares.
Cement scrips caught in rough weather
The cement sector finds itself in rough weather, with the government acting as a watchdog for rising cement prices.
Cement shares lost more ground today, extending their recent fall. ACC lost 1.1% to Rs 1002, Grasim shed 1.3% to Rs 2535, India Cements shed 0.7% to Rs 193.50 and Gujarat Ambuja Cements shed 0.3% to Rs 129.60. In late-January 2007, the central government abolished 12.5% import duty on cement in a bid to rein in domestic cement prices.
A possibility of the government banning cement exports also did not help. In this context, cement manufacturers have desisted from hiking cement prices, although the demand-supply situation distinctly favours a rise in domestic cement prices from the current levels. From a recent peak of Rs 1115.80 of 22 January 2007, ACC is down 10% to the current level. Grasim is off 11.8% from a recent peak of Rs 2874.60 of 7 February 2007. UltraTech Cement is off 14% from a recent peak of Rs 1120.85 of 7 February 2007 and India Cements is off 22.6% from its recent peak of Rs 250 of 16 January 2007
Supply constraints are a major reason for the current firmness in cement prices. Very few capacities are getting operational in the near term. Even if there is a ban on export, it will hardly have any impact on domestic prices as exports account for a small portion of total production.
Cement sector reported a 7.6% rise in despatches to 14.08 million tonnes in January 2007, during which period the production grew by 7.1% to 14 million tonne.
Analysts say that cement firms will continue to make good profits even if they maintain the prices at the current level. The price of a 50-kg cement bag in Mumbai is currently at Rs 226, a level maintained since November 2006. The current prices represents an 18% rise over the price in February 2006. Despite the government having done away with import duty on cement, it will hardly have any impact on the industry. India hardly imports cement.
The Union Budget 2007 is likely to lay greater thrust on agriculture as well as infrastructure development. Focus on increasing investment in the rural economy, coupled with rising agri-commodity prices together should bolster demand for housing construction in rural areas, which augurs well for the cement sector.
On the flip side, the rising cost of coal is likely to adversely affect the industry. The coal ministry is working towards a policy, which may phase out cheap coal availability to the cement industries.
Manugraph India surges as Reliance Mutual Fund ups stake
Manugraph India surged 6% to Rs 207.50 after the company informed on Tuesday Reliance Mutual Fund had acquired a further 3.7% in the company.The latest round of purchasing takes Reliance Mutual Fund's stake in Manugraph India to 5.96%.A total of 42,426 shares changed hands in the counter on BSE.
The Manugraph India stock had lost 6.6% on Tuesday to Rs 195.60 due to a broader weakness in the market, when the announcement was made during trading hours. Earlier, the stock began falling sharply in mid-January 2007; from Rs 252.70 on 15 January 2007 to a low of Rs 179.70 by 14 February 2007. Manugraph India had recovered to Rs 209.45 on 19 January 2007 before resuming the fall again the next day.
On 15 February 2007, Reliance Mutual Fund bought 11.25 lakh shares (3.7% stake) of Manugraph India at Rs 185 through open market purchases on BSE. Of the total shares acquired by Reliance Mutual Fund, 9.08 lakh were sold by Citigroup Global Markets.
Manugraph India (MIL) is the domestic market leader in newspaper web-offset printing machines and is an established tier-I supplier to large publishing houses, regional newspapers and publications. Constant modernisation and introduction of state-of-the-art technology at Manugraph India has enabled it to stay ahead in the industry.
In November 2006, MIL acquired US-based Dauphin Graphic Machines (DGM), manufacturer of web offset printing machines in Pennsylvania, for $19.2 million. Manugraph enjoys 70% market share in India, while that of DGM in the US is 60%. DGM has a current annual turnover of around $70 million, and employs 200 people.
The acquisition will help Manugraph get an entry into the North American market, besides increasing its manufacturing capabilities and global market share.
Manugraph India recently allotted 3.98 lakh shares at Rs 248 per share, to nine foreign nationals. This resulted in an increase in its equity to Rs 6.08 crore from Rs 6 crore. The face value per share is Rs 2.
MIL’s net profit declined 44.7% in the December 2006 quarter to Rs 10.15 crore (Rs 18.35 crore). Net sales for the same quarter rose 17.5% to Rs 93.58 crore.
Soma Textiles buoyant as promoters to mop up equity through open offer
Soma Textiles & Industries surged 3.55% to Rs 30.60, as promoters have made an open offer to acquire 20% of the company’s equity at Rs 32 per share.As many as 1.70 lakh shares were traded on the BSE.
The Soma Textiles scrip has been rallying since the last few days. From a low of Rs 25.90 on 14 February 2007, the stock rose to Rs 29.55 by 20 February 2007. Earlier, Soma Textiles had dropped from Rs 30.65 on 5 January 2007 to Rs 25.90 by 14 February 2007.
At the current market price of Rs 30.60, Soma Textiles & Industries trades at 30.29 times its Q3 December 2006 annualized EPS of Rs 1.01.
The promoter group of Soma Textiles & Industries has made an open offer to shareholders to buy 20% of the company's equity capital at Rs 32 per share. The offer follows the group's acquisition of 11.2% stake through the open market, at an average Rs 28.06 a share, on 19 February 2007. The promoter group currently holds 33.7% in the company. The open offer will open on 13 April 2007 and will close on 2 May 2007.
In August 2006, Soma Textiles had allotted of 18.50 lakh GDRs worth $ 17.2975 million, representing 1.85 crore underlying equity shares of Rs 10 each, to the depository - Deutsche Bank Trust Company Americas.
Soma Textiles & Industries’ principal products include cotton yarn and cotton fabrics as also blended yarn and man-made fabrics.
The company has posted a net profit growth of 12% to Rs 3.35 crore (Rs 2.99 crore) in Q3 December 2006. Net sales for the same quarter rose 10.50% to Rs 53.16 crore (Rs 48.09 crore).
The market-breadth, which was positive at the onset of trading, turned negative later. For 1,227 shares declining on BSE, 1021 rose. Just 70 shares were unchanged.The BSE clocked a turnover of Rs 1348 crore.Among the 30-Sensex pack, 16 advanced while the rest declined.Satyam Computers was the top loser, down 1.74% to Rs 469, on a volume of 1.30 lakh shares.
Cement scrips caught in rough weather
The cement sector finds itself in rough weather, with the government acting as a watchdog for rising cement prices.
Cement shares lost more ground today, extending their recent fall. ACC lost 1.1% to Rs 1002, Grasim shed 1.3% to Rs 2535, India Cements shed 0.7% to Rs 193.50 and Gujarat Ambuja Cements shed 0.3% to Rs 129.60. In late-January 2007, the central government abolished 12.5% import duty on cement in a bid to rein in domestic cement prices.
A possibility of the government banning cement exports also did not help. In this context, cement manufacturers have desisted from hiking cement prices, although the demand-supply situation distinctly favours a rise in domestic cement prices from the current levels. From a recent peak of Rs 1115.80 of 22 January 2007, ACC is down 10% to the current level. Grasim is off 11.8% from a recent peak of Rs 2874.60 of 7 February 2007. UltraTech Cement is off 14% from a recent peak of Rs 1120.85 of 7 February 2007 and India Cements is off 22.6% from its recent peak of Rs 250 of 16 January 2007
Supply constraints are a major reason for the current firmness in cement prices. Very few capacities are getting operational in the near term. Even if there is a ban on export, it will hardly have any impact on domestic prices as exports account for a small portion of total production.
Cement sector reported a 7.6% rise in despatches to 14.08 million tonnes in January 2007, during which period the production grew by 7.1% to 14 million tonne.
Analysts say that cement firms will continue to make good profits even if they maintain the prices at the current level. The price of a 50-kg cement bag in Mumbai is currently at Rs 226, a level maintained since November 2006. The current prices represents an 18% rise over the price in February 2006. Despite the government having done away with import duty on cement, it will hardly have any impact on the industry. India hardly imports cement.
The Union Budget 2007 is likely to lay greater thrust on agriculture as well as infrastructure development. Focus on increasing investment in the rural economy, coupled with rising agri-commodity prices together should bolster demand for housing construction in rural areas, which augurs well for the cement sector.
On the flip side, the rising cost of coal is likely to adversely affect the industry. The coal ministry is working towards a policy, which may phase out cheap coal availability to the cement industries.
Manugraph India surges as Reliance Mutual Fund ups stake
Manugraph India surged 6% to Rs 207.50 after the company informed on Tuesday Reliance Mutual Fund had acquired a further 3.7% in the company.The latest round of purchasing takes Reliance Mutual Fund's stake in Manugraph India to 5.96%.A total of 42,426 shares changed hands in the counter on BSE.
The Manugraph India stock had lost 6.6% on Tuesday to Rs 195.60 due to a broader weakness in the market, when the announcement was made during trading hours. Earlier, the stock began falling sharply in mid-January 2007; from Rs 252.70 on 15 January 2007 to a low of Rs 179.70 by 14 February 2007. Manugraph India had recovered to Rs 209.45 on 19 January 2007 before resuming the fall again the next day.
On 15 February 2007, Reliance Mutual Fund bought 11.25 lakh shares (3.7% stake) of Manugraph India at Rs 185 through open market purchases on BSE. Of the total shares acquired by Reliance Mutual Fund, 9.08 lakh were sold by Citigroup Global Markets.
Manugraph India (MIL) is the domestic market leader in newspaper web-offset printing machines and is an established tier-I supplier to large publishing houses, regional newspapers and publications. Constant modernisation and introduction of state-of-the-art technology at Manugraph India has enabled it to stay ahead in the industry.
In November 2006, MIL acquired US-based Dauphin Graphic Machines (DGM), manufacturer of web offset printing machines in Pennsylvania, for $19.2 million. Manugraph enjoys 70% market share in India, while that of DGM in the US is 60%. DGM has a current annual turnover of around $70 million, and employs 200 people.
The acquisition will help Manugraph get an entry into the North American market, besides increasing its manufacturing capabilities and global market share.
Manugraph India recently allotted 3.98 lakh shares at Rs 248 per share, to nine foreign nationals. This resulted in an increase in its equity to Rs 6.08 crore from Rs 6 crore. The face value per share is Rs 2.
MIL’s net profit declined 44.7% in the December 2006 quarter to Rs 10.15 crore (Rs 18.35 crore). Net sales for the same quarter rose 17.5% to Rs 93.58 crore.
Soma Textiles buoyant as promoters to mop up equity through open offer
Soma Textiles & Industries surged 3.55% to Rs 30.60, as promoters have made an open offer to acquire 20% of the company’s equity at Rs 32 per share.As many as 1.70 lakh shares were traded on the BSE.
The Soma Textiles scrip has been rallying since the last few days. From a low of Rs 25.90 on 14 February 2007, the stock rose to Rs 29.55 by 20 February 2007. Earlier, Soma Textiles had dropped from Rs 30.65 on 5 January 2007 to Rs 25.90 by 14 February 2007.
At the current market price of Rs 30.60, Soma Textiles & Industries trades at 30.29 times its Q3 December 2006 annualized EPS of Rs 1.01.
The promoter group of Soma Textiles & Industries has made an open offer to shareholders to buy 20% of the company's equity capital at Rs 32 per share. The offer follows the group's acquisition of 11.2% stake through the open market, at an average Rs 28.06 a share, on 19 February 2007. The promoter group currently holds 33.7% in the company. The open offer will open on 13 April 2007 and will close on 2 May 2007.
In August 2006, Soma Textiles had allotted of 18.50 lakh GDRs worth $ 17.2975 million, representing 1.85 crore underlying equity shares of Rs 10 each, to the depository - Deutsche Bank Trust Company Americas.
Soma Textiles & Industries’ principal products include cotton yarn and cotton fabrics as also blended yarn and man-made fabrics.
The company has posted a net profit growth of 12% to Rs 3.35 crore (Rs 2.99 crore) in Q3 December 2006. Net sales for the same quarter rose 10.50% to Rs 53.16 crore (Rs 48.09 crore).
Labels: Cement Scrips, Manugraph India, Soma Textiles Industries
posted by SY at 12:50 PM
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