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

To: Cynic 2005 who wrote (5694)	8/19/1999 7:48:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Himatsingka hits new high as bulls prop up mid-caps Mohan: Check this out. Here is a nice little gem that not too many people seem to know about,I have been lucky enough to buy this baby about 3 or 4 months ago when not too many investors wanted it. Look at the P/E,growth rate and the book value if you are interested in this sort of thing. himatsingka.com ======================= Source:ETOnline Abhrajit Gangopadhyay BANGALORE 19 AUGUST THE scrip of Himatsingka Seide, a 100 per cent export oriented unit (EOU) for spun silk and blended yarns, is on a bull-run. Spurred by market expectations of a 30-35 per cent growth in its Q2 profit and upbeat sentiment on mid-cap scrips, Himatsingka on Wednesday closed at Rs 390 on the Bombay Stock Exchange after reaching an all-time high of Rs 393. The scrip posted an all-time high at the National Stock Exchange of Rs 406 and closed at Rs 398. The company registered a 54 per cent rise in net in the first quarter, which stood at Rs 8.03 crore over a sales turnover of Rs 26.13 crore in the same quarter. The bullish sentiment is also said to be on account of the issue of 1:1 bonus shares announced by the company. The brokers said that excess demand is also generated in the face of book-closure date of the company. "People who buy now can avail the bonus issue," they said. "Interest in the scrip is further generated because the scrip is performing well quite contrary to other textile scrips," market watchers said. The lack of liquidity in the scrip is also understood to be generating interest in the retail investors' minds, brokers said. It may be recalled that market analysts had predicted in May, 1999, that the scrip would double its then value (around Rs 200) after the bonus issue. The scrip which was quoting at Rs 129 on January 4, 1999. Analysts said, with the company's book value at Rs 126.28 and a P/E ratio of 8, the higher price projections seem "quite achievable." Earnings per share (EPS), which stood at Rs 25.08 at the end of 1997-98 fiscal, is understood to be around Rs 30 at the end of '98-99. The strong fundamentals of the company, coupled with certain operational indicators, have fuelled such an appreciation of the scrip. The expanded factory of the company has started working at a full production level. The projected turnover for 1999-2000 is understood to be around Rs 110 crore with its net hovering around Rs 40 crore. The company has completed the divestment of its holding in the loss-making Credit Himatsingka Ltd. Himatsingka Seide now holds only 28 per cent equity in the company, while rest of the equity has been picked up "by parties from Calcutta." The company hopes to set off the losses from the subsidiary by March 2000.