Sensex in the red after reaching new all-time high
After striking an all-time high on back of a firm opening, the Sensex soon slipped into the red tracking weak Asian markets, and on profit-taking after a solid surge of late. Shares of private sector banks edged up for the second day in a row.
At 10:22 IST the Sensex was down 41 points, at 14,602. In early trade, the Sensex struck a new all-time high of 14,697.69, surpassing its earlier all-time high of 14,663.26 attained only on Wednesday (7 February 2007).
The market-breadth was positive. For 1,012 shares rising on BSE, 935 declined. Just 53 shares were unchanged. Gainers outpaced losers by a ratio of 1.08:1.The BSE clocked a turnover of Rs 694 crore.
ICICI Bank gained 1% to Rs 992.65. The stock rose for the second day in a row after the largest private sector bank on Tuesday, said it had raised the reference rate by 1% for corporate loans and home loans, from 9 February 2007. On Wednesday, the ICICI Bank ADR gained 2.4% to $46.13.
Steaming debut for Global Broadcast News
News broadcaster Global Broadcast News was trading at Rs 435 on BSE, a premium of 74% over the IPO price of Rs 250.The stock debuted at Rs 417.10, hit a high of Rs 437.50 and a low of Rs 381.25. As many as 26,794 shares changed hands in the counter in early trade on BSE.
The company had priced its IPO at the upper end of the Rs 230 - Rs 250 price-band. The face value per share is Rs 10. The issue was subscribed heavily although FIIs prohibited. FIIs can, however, buy the shares in the secondary market. The post-issue equity of the company is Rs 26.72 crore.
Global Broadcast News (GBN), part of the TV18 group, owns and operates the leading 24-hour English language news and current affairs channel, CNN-IBN, since the launch in December 2005.
Recently, GBN had entered into a share-subscription-cum-shareholder agreement with the Gupta family, BK Fincap and Jagran TV, acquiring 49% stake in BK Fincap, which in turn holds 82.1% of Jagran TV, which owns IBN 7, a 24-hour Hindi language news and current affairs channel, for Rs 68 crore.
GBN also holds 15% equity of Web 18 Holdings, which operates the portal business of the TV18 group. GBN has an agreement with CNN for an exclusive, limited, non-transferable right to use and reproduce the CNN name and principal logo.
Currently, more than 90% of the revenue of GBN is derived from advertisements.
GBN reported a net loss of Rs 26 crore on revenue of Rs 24 crore in the six months ended September 2006.
Deccan Cements springs on plans for new plant
Deccan Cements rose 2.91% to Rs 175.50, after the company decided to set up a 1 million-tonne cement plant and a captive power plant in Andhra.A total of 8,500 shares were traded on the BSE.The scrip had slipped from the recent high of Rs 186.40 on 18 January 2007, to Rs 170.35 by 7 February. Earlier, the scrip appreciated amid volatility en-route from Rs 148.15 on 12 December 2006, to Rs 186.40 by 18 January 2007.
At the current market price of Rs 175.50, Deccan Cements trades at 3.94 times its Q3 December 2006 annualized EPS of Rs 44.46.
The company has posted a net profit growth of 303.10% to Rs 7.78 crore (Rs 1.93 crore) in Q3 December 2006. Net sales during the qurter rose to Rs 59.30% to Rs 43.10 crore (Rs 27.06 crore).
Deccan Cement has a mini-cement manufacturing plant along with a captive power plant at Andhra Pradesh. The plant’s capacity was upgraded from 1.98 lakh tonnes a year to 2.97 lakh tonnes per year.
Mini-cement plants enjoy lower excise duty on cement produced / sold than the large plants. While the large plants are levied duties at Rs 400 per tonne, mini cement plants are levied excise duties at Rs 250 per tonne. Considering the fact that sales tax is levied on post-excise duty prices, the net benefit in excise and sales tax is around Rs 8 per 50 kg bag. Hence, most mini-cement plants sell cement at a discount to the price offered by large ones.
On the other hand, Deccan Cements is an established player in its chosen markets and is, therefore, able to realise higher prices than other mini-cement plants.
With a strong brand image, the company could enhance the capacity of its existing unit. However, if it expands the existing unit, it will lose the mini-cement status, and hence will be deprived of the differential excise benefit. Deccan Cements had also installed a new slag grinding plant of 3 lakh tonnes in April 2002.
Progressively, Deccan Cements is likely to increase the share of slag cement in the total cement sales, thereby reducing the cost of production leading margin improvement.
At 10:22 IST the Sensex was down 41 points, at 14,602. In early trade, the Sensex struck a new all-time high of 14,697.69, surpassing its earlier all-time high of 14,663.26 attained only on Wednesday (7 February 2007).
The market-breadth was positive. For 1,012 shares rising on BSE, 935 declined. Just 53 shares were unchanged. Gainers outpaced losers by a ratio of 1.08:1.The BSE clocked a turnover of Rs 694 crore.
ICICI Bank gained 1% to Rs 992.65. The stock rose for the second day in a row after the largest private sector bank on Tuesday, said it had raised the reference rate by 1% for corporate loans and home loans, from 9 February 2007. On Wednesday, the ICICI Bank ADR gained 2.4% to $46.13.
Steaming debut for Global Broadcast News
News broadcaster Global Broadcast News was trading at Rs 435 on BSE, a premium of 74% over the IPO price of Rs 250.The stock debuted at Rs 417.10, hit a high of Rs 437.50 and a low of Rs 381.25. As many as 26,794 shares changed hands in the counter in early trade on BSE.
The company had priced its IPO at the upper end of the Rs 230 - Rs 250 price-band. The face value per share is Rs 10. The issue was subscribed heavily although FIIs prohibited. FIIs can, however, buy the shares in the secondary market. The post-issue equity of the company is Rs 26.72 crore.
Global Broadcast News (GBN), part of the TV18 group, owns and operates the leading 24-hour English language news and current affairs channel, CNN-IBN, since the launch in December 2005.
Recently, GBN had entered into a share-subscription-cum-shareholder agreement with the Gupta family, BK Fincap and Jagran TV, acquiring 49% stake in BK Fincap, which in turn holds 82.1% of Jagran TV, which owns IBN 7, a 24-hour Hindi language news and current affairs channel, for Rs 68 crore.
GBN also holds 15% equity of Web 18 Holdings, which operates the portal business of the TV18 group. GBN has an agreement with CNN for an exclusive, limited, non-transferable right to use and reproduce the CNN name and principal logo.
Currently, more than 90% of the revenue of GBN is derived from advertisements.
GBN reported a net loss of Rs 26 crore on revenue of Rs 24 crore in the six months ended September 2006.
Deccan Cements springs on plans for new plant
Deccan Cements rose 2.91% to Rs 175.50, after the company decided to set up a 1 million-tonne cement plant and a captive power plant in Andhra.A total of 8,500 shares were traded on the BSE.The scrip had slipped from the recent high of Rs 186.40 on 18 January 2007, to Rs 170.35 by 7 February. Earlier, the scrip appreciated amid volatility en-route from Rs 148.15 on 12 December 2006, to Rs 186.40 by 18 January 2007.
At the current market price of Rs 175.50, Deccan Cements trades at 3.94 times its Q3 December 2006 annualized EPS of Rs 44.46.
The company has posted a net profit growth of 303.10% to Rs 7.78 crore (Rs 1.93 crore) in Q3 December 2006. Net sales during the qurter rose to Rs 59.30% to Rs 43.10 crore (Rs 27.06 crore).
Deccan Cement has a mini-cement manufacturing plant along with a captive power plant at Andhra Pradesh. The plant’s capacity was upgraded from 1.98 lakh tonnes a year to 2.97 lakh tonnes per year.
Mini-cement plants enjoy lower excise duty on cement produced / sold than the large plants. While the large plants are levied duties at Rs 400 per tonne, mini cement plants are levied excise duties at Rs 250 per tonne. Considering the fact that sales tax is levied on post-excise duty prices, the net benefit in excise and sales tax is around Rs 8 per 50 kg bag. Hence, most mini-cement plants sell cement at a discount to the price offered by large ones.
On the other hand, Deccan Cements is an established player in its chosen markets and is, therefore, able to realise higher prices than other mini-cement plants.
With a strong brand image, the company could enhance the capacity of its existing unit. However, if it expands the existing unit, it will lose the mini-cement status, and hence will be deprived of the differential excise benefit. Deccan Cements had also installed a new slag grinding plant of 3 lakh tonnes in April 2002.
Progressively, Deccan Cements is likely to increase the share of slag cement in the total cement sales, thereby reducing the cost of production leading margin improvement.
posted by SY at 11:48 AM
0 Comments:
Post a Comment
<< Home