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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (5587)	8/15/1999 11:36:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 12475

The Insider - (Aug 16 -Aug 21)(ET Online) Infotech synergy TATA Infotech tatainfotech.com TATA Consultancy tcs.com A dream merger of a Infotech with Tata Consultancy Services (TCS)ld become a reality, according to market observers. The Insider learns that the Tata Group is examining a proposal to merge different Tata companies in the information technology (IT) sector into one single entity. A statement to this effect was also made by Mr Ratan Tata last Friday in Bangalore. The scrip, which is trading near its 52-week low is cum-bonus. The company had recommended a bonus issue in the ratio of 1:2 and the record date for the purpose of issuing bonus shares is likely to be announced soon. The scrip has a 52-week high/low of Rs 2080/Rs 801. In the first quarter ending June '99, the firm had announced lower profits. The Insider learns that this was on account of making provisions and write-offs ahead of the merger with other group companies. It is also learnt that the group is considering a proposal to list TCS at the Nasdaq through an issue of ADRs. A couple of large mutual funds are queuing up to accumulate the stock. In view of the low equity base of Rs 12.25 crore and promoters controlling more than 76 per cent equity, the scrip has poor liquidity. However, with the scrip's inclusion in the Group A at the BSE, liquidity will be ensured, enabling the scrip to move up quickly. Soft(ware) steps hclinfosystems.com HCL Infosystems Limited is changing its product mix to increase the contribution of software business in its turnover. In financial 2000, the company expects to earn 50 per cent of its revenues from the software division against 30 per cent in financial '99. This is projected to give a 50 per cent jump in bottom-line in the current financial. The Insider learns that HCL Infosystems will announce an EPS of Rs 20 per share for the financial ending June '99 for which results will be announced shortly. This is likely to go up to an EPS of Rs 30 in financial 2000 when profits of Rs 95 crore are expected. Interestingly, 70 per cent of the company?s equity is held by the promoters and only 6 per cent is with FIIs. Also The Insiderlearns that HCL's group company, HCL Technologies will hit the domestic market with an IPO ahead of its planned listing in the US. The IPO could be at a substantial premium. better prices, better profits finolex.com FINOLEX Industries is set to report a sharp increase in profitability in the fourth quarter ending July '99. The Insiderlearns that net profit for the fourth quarter would be Rs 25 crore. Coupled with a net profit of Rs 25 crore in the previous 9 months, the bottomline for the full year will be Rs 50 crore compared to a loss of Rs 11 crore in the previous year. The current financial is estimated to be even better for the company, with net profit projected to touch Rs 110 crore and an EPS of over Rs 7 per share. The scrip is quoted at a P/E of less than 4. PVC prices have risen 40 per cent since April '99 to Rs 36.86 per kg. PVC contributed 60 per cent of the Rs 826-crore turnover of the company in financial '98. And raw material prices have not shown a significant gain. International naptha prices declined by 17 per cent since April '99. The prices of ethylene and EDC, its major raw materials have remained steady. Domestic demand for PVC is slated to increase by 12-15 per cent, thus leading to a growth in volume. Around 23 per cent of turnover came from PVC pipes and fittings, a sector which is bound to see growth as a result of increased demand for telephone cables and higher orders received by its sister concern, Finolex Cables. The scrip is expected to rally in the short term. Riding a crest CREST Communication Ltd, among a few listed media companies, is set to announce excellent results in the current year with profits estimated to jump 46 per cent. Under its expansion plan in the last two years Crest had opened offices in the US and tied up with a leading hollywood studio for making 2 and 3-dimensional animation films for advertisements. One of the ads from the company has won the Cilo Award for excellence in technical effects. In the domestic market, besides animation films, the company is providing post production facilities for ads and television serials.The company's board of directors consist of noted personalities such as Dr Raja Rammana, Shyam Benegal and Gurcharan Dass. A leading Mumbai-based brokerage has put a buy recommendation on the scrip.