To: Mohan Marette who wrote (6137 ) 8/31/1999 8:55:00 PM From: Mohan Marette Read Replies (1) | Respond to
GrapeLine from Probity ResearchPainting a rosy picture- Asian Paints , a leading paint manufacturing company, is expected to declare a bonus in the ratio of 3 shares for every 5 shares held. Asian Paints has a major market share in decorative paint(41%) segment. The company is expected to grow faster following the surge in housing demand throughout the country. In FY99, the company's total equity capital was Rs401.16 mn. The company has reserves and surplus of Rs2.64bn (6.59 times equity). Given the high book value(Rs76) and the fact that the performance of the company is expected to improve in the future, there is every likelihood that the company would reward shareholders with a bonus. Watch the counter.Compaq India (Digital Equipment) is expected to announce hefty dividend of Rs20 per share (200%). L&T Information Technologies Ltd , a wholly onwed subsidiary of L&T is not taking over Advent Computers. The company sources informed that they have already clarified to media that the take over rumours are baseless and they have only marketing and support arrangement with them. .Cybermate , a Hyderabad based software company is planning to issue new equity shares on preferential basis. The guy picking up a significant stake in the company is suppose to be a top brass executive of US based Hewlett-Packard (HP). The guy is also suppose to be having quite a few patents registered on his name. This development can significantly change the fundamentals of the company and valuations too !!! ( The stock is currently listed on HSE)Telco is planning to hive-off its transmission division. The company is reportedly having talks with a US major company. The division is expected to fetch US$ 90mn for Telco. A huge cash inflow for the company. This can be a good opportunity for the company to reduce its interest burden and improve its bottom line. The price of the share is expected tol rise once the company sources confirm the deal.Jindal Vijaynagar Steel Ltd . There are reports that the steel plant with the superior technology of ?Corex? (third of its kind in the world) has given highly positive results in its second run. The top executives of one of the institutions that has extended loans are expected to visit the plant this weekend. The plant will be one of the lowest cost producing steel plants. On the news of the stabilization, we expect the punters of the market to start speculating on the scrip. A potential for a short- term speculative profit. Indo Gulf is near to sign a deal with a French company for the jetty, which will fetch around Rs600mn to Rs650mn. The deal is expected to materialize in few days's time. This will help the company to improve its cash flow in the coming years.Grasim Industries is looking to sell its sponge iron division. Grape line hears that the Ispat International group may emerge as a strong suitor. It may interest readers that Mr. L. N. Mittal, who is on the board of ICICI, is said to have recently visited Grasim's sponge iron plant.Aditya Birla group is restructuring. The group is known to be looking for a third partner in MRPL. Grape line hears that the group may not be averse to sell out its stake and Exxon may be in the running for the same.Gujatat Ambuja Cement Ltd ., is contemplating a bonus issue. The company has performed exceedingly well in the last quarter and is scheduled to announce its results for its year ending June soon. Modi Luft , which has in past tried to tie up with major international airlines, is rumored to have inked a deal with British Airways. Though the details of the deal are not known yet company officials were in London recently to negotiate the deal. A leading lawyers firm in Mumbai has already prepared the requisite papers and BA is expected to apply to the government soon to permit it to buy the equity. Essar Steel is finalizing its deal for selling its power plant to a multinational power major company. Sona Steering, Motherson Sumi, I P Rings, Sundaram Fasteners and MICO. KSB Pumps . It is a MNC stock available at reasonable valuations.Citicorp Securities . The company is aggressively pursuing an IT enabling strategy, which is expected to yield excellent returns in the medium term.
