BackSensex lifeline: high beeps and pratfalls
Sensex lifeline: high beeps and pratfalls
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OBC (4.8% up)
Oriental Bank of Commerce was up 4.8% after Morgan Stanley raised its target price to Rs325 on greater visibility on margin progression and comfort on earnings outlook. Morgan Stanley says a cyclical rise in core earnings over the next few quarters could be the catalyst for a re-rating.
McLeod Russel (8.6% up)
The McLeod Russel stock ended up 8.6% after Bank of America Merrill Lynch upgraded its earnings by 16-23% on the back of higher realized tea prices and raised its price target to Rs250. The bank expect tea prices to stay firm in FY11, with an upward bias. McLeod also benefits from favourable location bias.
Opto Circuits (9.7% up)
Opto Circuits shares closed up 9.7% after the firm raised Rs400 crore through a qualified institutional placement at Rs187 per share, which led to pre-equity dilution of nearly 11.7%. The company says it will use the funds to improve balance sheet, see growth of at least 30% and a debt-equity ratio at 0.97.
GMR Infrastructure (18% up)
GMR Infrastructure shares were up 1.8% after CNBC-TV18 reported it plans to list its holding company and raise Rs7,500 crore over three years. It plans to raise Rs1,500 crore by listing its energy arm in four-five months. It will also look at listing its airport business in two-three years.
Aban Offshore (2.8% down)
Shares of Aban Offshore ended the day 2.8% lower after Business Standard reported that it may lose a contract for its drill ship ‘Aban Abraham’ for deployment at an offshore field in Ghana, which could dent its revenue by Rs744 crore in the current fiscal year.
FDC (8.4% up)
Share of pharma company FDC closed 8.4% higher after the company’s board of directors approved the buy-back of up between 1.3 million and 8.65 million shares at Rs60 per share, against the current market price of Rs51.50 per share, subject to a maximum limit of Rs39 crore.
Goa Carbon (5.2% up)
Shares of Goa Carbon closed up 5.2% after the management said that the board of directors has approved a greenfield venture in China with an investment of nearly Rs800 crore in various stages where promoters will invest Rs200-250 crore. The plant is expected to start generating revenues around 2010-2011.
Usha Martin (10.6% up)
The Usha Martin stock ended up 10.6% after the management said there are no plans to sell a stake. They have not been approached by any global steel firm. But they see operating margins rise to 21-22% from 17% and expect to achieve 1 million tonnes capacity in the steel business.
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