Sensex lifeline: high beeps and pratfalls

Sensex lifeline: high beeps and pratfalls

Neyveli Lignite (14.7% up)

Neyveli Lignite Corp. ended up 14.7% on divestment expectations. The stock had been huge underperformer compared to all other divestment candidates. Neyveli had gained only 8% in the last four sessions compared with the other stocks, which moved between 20-60%.

Educomp (9.1% up)

Educomp Solutions Ltd rose 9.1% after JPMorgan told CNBC-TV18 that Educomp has moved to a new model of free cash flows from annuity to licence-based. JPMorgan sees an Educomp smart class compound annual growth rate of 50% and maintains a target of Rs1,000. Its FY11 earnings per share estimate is Rs35.

REC (5.4% up)

Rural Electrification Corp. Ltd rose 5.4% after the firm received approval for up to 20% dilution through a follow-on public offer. REC’s offer is likely to hit markets by February next year. At the end of the September quarter, the Centre held an 81.82% stake in the company.

Pyramid Saimira (9.8% down)

Pyramid Saimira Theatre Ltd ended down 9.8% after market regulator Sebi banned it from dealing in stock markets for seven years. Sebi found that the company colluded with seven persons to corner the portion reserved for employees in its initial public offering in 2006.

Shree Renuka (2.1% up)

Shree Renuka Sugars Ltd ended up 2.1% after acquiring Brazil-based firm VDI at an enterprise value of $240 mn. The firm will pay $82 mn for 100% stake in VDI. The balance, assumed as debt, will be repaid over eight years. CNBC-TV18 reported the acquisition plans in July.

Airlines (up)

Shares of Kingfisher Airlines ended up 2.4% and Jet Airways (India) Ltd rose 1.4% after a CNBC-TV18 exclusive that foreign airlines are keen on buying stake in Indian carriers. Virgin, Emirates and Singapore Airlines had approached the government seeking changes to norms.