Dish TV (15.64% down)
The company’s promoters raised around Rs270 crore through 55 million shares, or 5.8% stake, at Rs49 per share in a block deal. The stock fell on concerns that the money will be used for subscribing to the second tranche of a rights issue, and more funding needs will arise in the near future.
Tata Steel (10.23% down)
The Tata Steel stock declined as China announced export tax rebates of 9% on hot-rolled coil and steel plates. This will make Chinese steel cheaper in the export markets by $40-45 (Rs1,896-2,133) per tonne, and is an incremental negative for steel prices in other regions.
S Kumars (9.93% down)
The shares of S Kumars Nationwide Ltd declined after CNBC-TV18 reported that the Shree Ram Urban Infrastructure Ltd warrants issue has been taken to the Bombay high court. Shareholders oppose the issue, saying it will benefit promoters at the cost of minority shareholders.
Indiabulls (9.94% down)
Kotak Life Insurance says Indiabulls Real Estate stock is starting to look fully valued at a revised target price of Rs235 per share (from the earlier Rs210) based on net asset value of Rs239 as on 11 March and without any discount on the land bank value (from the earlier 20%)
Gwalior Chem (4.11% up)
Gwalior Chemical Industries Ltd is to sell its Nagda facility and windmills business for Rs536 crore. It will get an equity value of Rs380 crore after debt, considering debt of Rs156 crore as of September. It also intends to return up to Rs100 crore preferably to non-promoter shareholders.
Shriram Transport (2.32% up)
The stock has been buzzing on the back of fund action, with Reliance Capital Mutual Fund buying 2.4 million shares at Rs285 each on Friday. On 24 April, it had bought 5.37 million shares at Rs200 each and ICICI Prudential Life had bought 10 million shares at Rs300 each on 20 May.
United Spirits (7.27% down)
Citigroup maintains a “sell” rating for the company, with a new target price of Rs901, based on a blended enterprise value/earnings before interest, taxes, depreciation and amortization method. Citi says there is incremental positives in the company, but all are priced in.
Ambuja Cement (4.66% down)
India Infoline has a “sell” rating, with a price target of Rs86. Ambuja Cement is trading at $140 (Rs6,636) and $134 enterprise value per tonne for calendar years 2009 and 2010 estimates, respectively. The brokerage expects it to decline by 1.5% in 2009 and by 13.7% in 2010.