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

To: Mohan Marette who wrote (3924)	3/25/1999 9:08:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Speaking of Oriental Bank here is their website in case anybody wants to check them out. obcindia.com

To: Mohan Marette who wrote (3924)	3/25/1999 9:15:00 AM
From: Mohan Marette	Respond to of 12475

Indian Petrochemicals Corp Ltd-Government Disinvestment Play. Rumor: DuPont,Shell and Reliance are vying for the stake. Indian Petrochemicals Corporation Ltd. The government has finally kicked off the process of disinvestment in Indian Petrochemicals Corporation (IPCL) through a strategic sale of 25 per cent by inviting bids from global advisors. IPCL manufactures a whole range of downstream petrochemical products, which have wide ranging applications. On the basis of sales value, polymers, fibre and fibre intermediates and chemicals contributed 69 per cent, 15 per cent and 16 per cent respectively of IPCL's total income. It has two integrated petrochemicals complexes viz a naphtha cracker at Vadodara and a gas cracker at Nagothane in Maharashtra. For the third quarter ended December 1998, IPCL posted a net profit of Rs 35.65 crore on net sales of Rs 734.66 crore. And for the nine month ended December 1998, the net profit stood at Rs 11.75 crore on a net sale of Rs 2,182 crore. Among the various companies in the race include petrochemical giants such as Shell, Reliance Industries and Dow Chemicals. Reliance's interest in IPCL is understandable from the synergies of operations and products. Reliance will have low-cost manufacturing facilities as IPCL's both plants are substantially depreciated. Moreover, with the commissioning of IPCL's Gandhar Phase II project, Reliance would have a monopoly in the ethylene market. For any company acquiring 25 per cent stake in IPCL would translate into considerable saving compared to the cost involved in setting up a greenfield project. The scrip is current trading at Rs 108. Existing shareholders should continue to hold, but for new investors the upside is limited.

To: Mohan Marette who wrote (3924)	3/26/1999 9:03:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Investment Idea- Hero Honda may clock 60% growth in PAT.(Well,I stated as much earlier) Saturday, March 27, 1999 Hero Honda may clock 60% growth in PAT Sanjay Sardana -------------------------------------------------------------------------------- New Delhi, Mar 26: Riding the two-wheeler boom, Hero Honda is expected to announce a spectacular growth in the region of 65-70 per cent in the current fiscal. On the back of an encouraging volume-led growth, the full year profit is expected to exceed Rs 125 crore mark. The net profit for the fourth-quarter is expected to zoom to around Rs 38-42 crore on a turnover of around Rs 425-450 crore. This would mean a full-year turnover in the region of Rs 1525-1575 crore and a net profit of around Rs 125-130 crore. In the first nine months, Hero Honda has been able to better the industry's average growth. Further, a higher demand from the rural segment has played a significant part in hero Honda's rising volumes. Analysts expect the growth in the two-wheeler segment, especially the motorcycle segment, will continue. ''Hero Honda has been quick to capitalise on this growing demand for the trendy mobikes and scooterettes, which has helped the company keep abrest,'' said an analyst at a FII. With the financial yeardrawing to a close, the market is now talking of a re-rating in the wake of the results, expected to be announced in April. Although the scrip has already appreciated a lot, the expected earnings of Rs 125 crore would yet again make the scrip's discounting attractive. The current annualised earning per share (EPS) on the post-bonus equity of Rs 39.94 crore of around Rs 28 would improve to around 32, thus improving the price-earning multiple to an attractive level of around 26-27. It's only the two-wheeler segment which has sustained the growth levels. The automobile industry as a whole has fared badly in the first 11 months of the current fiscal. Against a negative growth by other segments, the two-wheeler segment has reported a 10 per cent growth in sales for the 11-month period ended February 1999. The two-wheeler domestic sales at 30.39 lakh units were up from 27.69 lakh units in the corresponding period of last year. However, exports in the two wheeler segment suffered a setback and the exports droppedby almost 25 per cent from 1,12,029 units to 84,567 units. The market has already started speculating the company's spectacular results and the scrip in less than a month has zoomed from Rs 650 to the current level of Rs 850. Hero Honda's scrip in a short span of less than six months has bounced back close to its cum-bonus price of Rs 950 in last August. Expectations of a high growth in earning to match the company's expanded equity has resulted in the scrip bouncing back after going ex-bonus in August 1998. In 1998-99, the company invested Rs 100 crore for developing new models and expanding capacities. Another Rs 300-crore would be put in over the next four years. With these investments, the company intends to surpass the one million units sales mark. Besides, Hero Honda has already increased its capacity of its plant at Dharuhera, Haryana to 3,50,000 units and that of the new Gurgaon plant to 1,50,000 units per annum. financialexpress.com