Sensex above 13,050 on bargain-hunting
The market opened firm, as bargain-hunting lifted battered index pivotals. At 10:07 IST the BSE Sensex was up 122.65 points, at 13,056.27. It had opened higher, at 13,013.74, and also surged to a high of 13,080.37.
The total turnover on BSE amounted to Rs 374 crore.The market-breadth was strong. Over two scrips were advancing for every loser on BSE. Against 892 shares in the green, 421 were in the red. Just 24 scrips remained unchanged.Among the 30-Sensex pack, 21 advanced while the rest declined.
Indian Bank trades at discount over IPO price post listing
Indian Bank was trading at Rs 90.80 on NSE in early trade, a discount over the IPO price of Rs 91.The stock debuted at Rs 93.90, which is also its high so far. The Indian Bank scrip also fell to a low of Rs 75. A strong 68.2 lakh shares changed hands in the counter on NSE.
Indian Bank had priced its IPO at Rs 91, the upper end of the Rs 77 - Rs 91 price band. The issue had received strong investor response, and had been subscribed over 30 times. The face value per share is Rs 10 and the equity capital is Rs 429.77 crore.
The IPO will augment Indian Bank's capital base to meet Basel II standards. At end-September 2006, the bank’s capital adequacy ratio (CAR) was 12.02% (Tier I CAR: 9.84%) as against Reserve Bank of India (RBI)'s stipulation of 9%.
Indian Bank had 1,408 branches at end-September 2006. The branches were spread over 26 states and three union territories. The bank also has a branch in Singapore and a branch and a foreign-currency banking unit in Colombo, Sri Lanka. About 70.45% of its branches (992 branches) are in south India.
Following the IPO, the government holding in Indian Bank has declined to 80% from 100%.
Indian Bank’s net non-performing asset (NPA) to net advances has come down to an impressive 0.45% by end-September 2006, from as high as 8.30% in FY-2002. The credit-deposit ratio stood at 57.61% by end-September 2006 (40.93% in FY 2003), lower compared with the industry ratio, giving elbow-room to enhance lending portfolio.
Indian Bank meets a high portion of the funding requirement through term deposits. At end-September 2006, term deposits represented 64.09% of the total deposits, with savings and current deposits constituting 27.05% and 7.06%, respectively.
The current price of Rs 90.80 discounts its FY 2006 EPS of Rs 11.40, by a PE multiple of 7.9.
MUL rallies on healthy February sales figures
Maruti Udyog surged 3% to Rs 867, recovering from Wednesday’s post-Budget fall, after it reported robust sales for February 2007.As many as 70,046 shares changed hands in the counter on BSE.
The Maruti Udyog (MUL) stock had tumbled 5.4% on Wednesday, to Rs 839.70, as a Budgetary-cut in excise duty on cars did not materialise. The government had cut excise duty only on small cars from 24% to 16% in the previous Budget and it was expected that the same benefit would be extended to all cars this fiscal. The MUL stock had bounced back on Budget eve on such optimism.
From Rs 863.30 on 23 February 2007, the stock had gained 2.8% in two trading sessions to Rs 887.65 by 27 February 2007. Earlier, the stock had skidded from a recent peak of early-February 2007.
MUL said on Thursday it sold 62,999 vehicles in February 2007, up 53% from 41,095 units in the same month a year earlier. Maruti sold 59,095 units in the domestic market in February 2007, up 61% from 36,608 units in the same month a year earlier. However, MUL's exports fell 13% to 3,904 units in Feb 2007 from 4,487 units in the same month a year earlier.
MUL said after trading hours on Wednesday, it will raise prices of vehicles from 15 March 2007, after the government said it will impose an additional tax to raise funds for education. As per the Budget, for the fiscal year starting 1 April 2007, the government will impose 1% cess on all taxes to fund secondary and higher education, in addition to the existing 2% cess, which raises funds for basic education.
MUL added it was not raising prices immediately so consumers could buy cars at pre-Budget prices, but did not specify the extent of the increase, or specify which models the hike would apply to. "In the run-up to the Budget, there was speculation that certain taxes or duties may come down," MUL explained in a statement, referring to the expectation of an excise duty cut on passenger vehicles.
"Owing to that, several customers postponed purchasing new cars till after the Budget. In light of this, the company has decided to defer the hike to allow customers to purchase cars at pre-Budget prices," the statement read.
Maruti had raised prices only recently. At the beginning of February 2007, Maruti raised prices of its cars by up to Rs 12,000.
MUL’s net profit rose 11% in the December 2006 quarter to Rs 376.41 crore on 18% growth in sales to Rs 3679 crore.
The Government of India, recently, invited bids for its residual stake in MUL, a sale that could lead to its exit from the nation's biggest carmaker. State-run financial institutions, banks and mutual funds have been asked to submit initial offers for the government's 10.27% stake in Maruti, an advertisement by Department of Disinvestment says. The bids must be for a minimum Rs 10 crore, and have to be submitted by 9 March 2007. The government will also have the discretion to sell only a part of the total shares on offer for sale.
Gammon India slips as Franklin Templeton MF cuts holding
Construction firm Gammon India slipped 2.12% to Rs 311, after Franklin Templeton Mutual Fund sold off 0.85% stake in the company.Post-sales, Franklin Templeton's holding in the company came down to 2.63%.As many as 2.92 lakh shares were traded on the BSE.
The Gammon India (Gammon) scrip has been declining since early-December 2006. From Rs 472.95 on 5 December 2006, the scrip dropped to Rs 375.50 by 8 February 2007, only to appreciate to Rs 396.80 by 27 February 2007. On 28 February 2007 (Budget day, Wednesday) the stock dropped to close at Rs 317.75.
At the current market price of Rs 311, Gammon India trades at 21.34 times its Q3 December 2006 annualized EPS of Rs 14.57.
Early last month, Gammon India informed that market watchdog, Securities and Exchange Board of India (Sebi), had told investment banks that an IPO of Gammon's subsidiary could not be allowed for 1 year. According to Gammon, Sebi made the remark in a letter to bankers, who were to handle the IPO of Gammon Infrastructure Projects (GIPL), a subsidiary.
On 21 December 2007, Sebi barred Gammon, its chairman Abhijit Rajan and two other entities, from any transaction in shares of Gammon Infrastructure for three years. Gammon informed, it had challenged the order.
At present, Gammon India holds 82.5% stake in GIPL. US-based hedge-fund, Ochziff, too holds 12.5% in GIPL, which the former bought in July 2005 for Rs 122 crore. All build-operate-transfer (BOT) projects of Gammon India are routed through GIPL. GIPL is aggressively building a portfolio of development projects in roads and other sectors.
Gammon India is one of the oldest construction companies in India. It has capabilities in almost all segments of the business—roads, ports, power, irrigation, and buildings.
Gammon India’s net profit rose 50.9% in the December 2006 quarter to Rs 31.60 crore, on 31.4% growth in net sales to Rs 440.07 crore.
The total turnover on BSE amounted to Rs 374 crore.The market-breadth was strong. Over two scrips were advancing for every loser on BSE. Against 892 shares in the green, 421 were in the red. Just 24 scrips remained unchanged.Among the 30-Sensex pack, 21 advanced while the rest declined.
Indian Bank trades at discount over IPO price post listing
Indian Bank was trading at Rs 90.80 on NSE in early trade, a discount over the IPO price of Rs 91.The stock debuted at Rs 93.90, which is also its high so far. The Indian Bank scrip also fell to a low of Rs 75. A strong 68.2 lakh shares changed hands in the counter on NSE.
Indian Bank had priced its IPO at Rs 91, the upper end of the Rs 77 - Rs 91 price band. The issue had received strong investor response, and had been subscribed over 30 times. The face value per share is Rs 10 and the equity capital is Rs 429.77 crore.
The IPO will augment Indian Bank's capital base to meet Basel II standards. At end-September 2006, the bank’s capital adequacy ratio (CAR) was 12.02% (Tier I CAR: 9.84%) as against Reserve Bank of India (RBI)'s stipulation of 9%.
Indian Bank had 1,408 branches at end-September 2006. The branches were spread over 26 states and three union territories. The bank also has a branch in Singapore and a branch and a foreign-currency banking unit in Colombo, Sri Lanka. About 70.45% of its branches (992 branches) are in south India.
Following the IPO, the government holding in Indian Bank has declined to 80% from 100%.
Indian Bank’s net non-performing asset (NPA) to net advances has come down to an impressive 0.45% by end-September 2006, from as high as 8.30% in FY-2002. The credit-deposit ratio stood at 57.61% by end-September 2006 (40.93% in FY 2003), lower compared with the industry ratio, giving elbow-room to enhance lending portfolio.
Indian Bank meets a high portion of the funding requirement through term deposits. At end-September 2006, term deposits represented 64.09% of the total deposits, with savings and current deposits constituting 27.05% and 7.06%, respectively.
The current price of Rs 90.80 discounts its FY 2006 EPS of Rs 11.40, by a PE multiple of 7.9.
MUL rallies on healthy February sales figures
Maruti Udyog surged 3% to Rs 867, recovering from Wednesday’s post-Budget fall, after it reported robust sales for February 2007.As many as 70,046 shares changed hands in the counter on BSE.
The Maruti Udyog (MUL) stock had tumbled 5.4% on Wednesday, to Rs 839.70, as a Budgetary-cut in excise duty on cars did not materialise. The government had cut excise duty only on small cars from 24% to 16% in the previous Budget and it was expected that the same benefit would be extended to all cars this fiscal. The MUL stock had bounced back on Budget eve on such optimism.
From Rs 863.30 on 23 February 2007, the stock had gained 2.8% in two trading sessions to Rs 887.65 by 27 February 2007. Earlier, the stock had skidded from a recent peak of early-February 2007.
MUL said on Thursday it sold 62,999 vehicles in February 2007, up 53% from 41,095 units in the same month a year earlier. Maruti sold 59,095 units in the domestic market in February 2007, up 61% from 36,608 units in the same month a year earlier. However, MUL's exports fell 13% to 3,904 units in Feb 2007 from 4,487 units in the same month a year earlier.
MUL said after trading hours on Wednesday, it will raise prices of vehicles from 15 March 2007, after the government said it will impose an additional tax to raise funds for education. As per the Budget, for the fiscal year starting 1 April 2007, the government will impose 1% cess on all taxes to fund secondary and higher education, in addition to the existing 2% cess, which raises funds for basic education.
MUL added it was not raising prices immediately so consumers could buy cars at pre-Budget prices, but did not specify the extent of the increase, or specify which models the hike would apply to. "In the run-up to the Budget, there was speculation that certain taxes or duties may come down," MUL explained in a statement, referring to the expectation of an excise duty cut on passenger vehicles.
"Owing to that, several customers postponed purchasing new cars till after the Budget. In light of this, the company has decided to defer the hike to allow customers to purchase cars at pre-Budget prices," the statement read.
Maruti had raised prices only recently. At the beginning of February 2007, Maruti raised prices of its cars by up to Rs 12,000.
MUL’s net profit rose 11% in the December 2006 quarter to Rs 376.41 crore on 18% growth in sales to Rs 3679 crore.
The Government of India, recently, invited bids for its residual stake in MUL, a sale that could lead to its exit from the nation's biggest carmaker. State-run financial institutions, banks and mutual funds have been asked to submit initial offers for the government's 10.27% stake in Maruti, an advertisement by Department of Disinvestment says. The bids must be for a minimum Rs 10 crore, and have to be submitted by 9 March 2007. The government will also have the discretion to sell only a part of the total shares on offer for sale.
Gammon India slips as Franklin Templeton MF cuts holding
Construction firm Gammon India slipped 2.12% to Rs 311, after Franklin Templeton Mutual Fund sold off 0.85% stake in the company.Post-sales, Franklin Templeton's holding in the company came down to 2.63%.As many as 2.92 lakh shares were traded on the BSE.
The Gammon India (Gammon) scrip has been declining since early-December 2006. From Rs 472.95 on 5 December 2006, the scrip dropped to Rs 375.50 by 8 February 2007, only to appreciate to Rs 396.80 by 27 February 2007. On 28 February 2007 (Budget day, Wednesday) the stock dropped to close at Rs 317.75.
At the current market price of Rs 311, Gammon India trades at 21.34 times its Q3 December 2006 annualized EPS of Rs 14.57.
Early last month, Gammon India informed that market watchdog, Securities and Exchange Board of India (Sebi), had told investment banks that an IPO of Gammon's subsidiary could not be allowed for 1 year. According to Gammon, Sebi made the remark in a letter to bankers, who were to handle the IPO of Gammon Infrastructure Projects (GIPL), a subsidiary.
On 21 December 2007, Sebi barred Gammon, its chairman Abhijit Rajan and two other entities, from any transaction in shares of Gammon Infrastructure for three years. Gammon informed, it had challenged the order.
At present, Gammon India holds 82.5% stake in GIPL. US-based hedge-fund, Ochziff, too holds 12.5% in GIPL, which the former bought in July 2005 for Rs 122 crore. All build-operate-transfer (BOT) projects of Gammon India are routed through GIPL. GIPL is aggressively building a portfolio of development projects in roads and other sectors.
Gammon India is one of the oldest construction companies in India. It has capabilities in almost all segments of the business—roads, ports, power, irrigation, and buildings.
Gammon India’s net profit rose 50.9% in the December 2006 quarter to Rs 31.60 crore, on 31.4% growth in net sales to Rs 440.07 crore.
Labels: Gammon India, Indian bank, Maruti Udyog
posted by SY at 12:30 PM
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