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Container Corp: High payout

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BS Research Mumbai
Last Updated : Feb 05 2013 | 3:21 AM IST
The Container Corporation of India (CCI) stock appreciated by 11 per cent after the company proposed a maiden bonus issue to its shareholders. The scrip gained by Rs 179.50 from Rs 1,616.10 to Rs 1,795.60 last week.
 
The company's board of directors announced bonus shares in a ratio of 1:1. The board also declared an interim dividend of 110 per cent (Rs 11 a share) for 2007-08.
 
The combined volume on the counter has more than doubled with 7.84 lakh equity shares changing hands on BSE and NSE last week against 3.37 lakh shares traded in the previous week.
 
The stock had under-performed the market over the past one month, declining 19.67 per cent compared with the Sensex's decline of 13 per cent. It had also under-performed the market in the past one quarter, declining 21.63 per cent compared with the Sensex's decline of 9.97 per cent.
 
The company is a 100 per cent subsidiary under the railway ministry, with total reserves of Rs 2,564.65 crore, including Rs 291.35 crore general reserves at the end of March 2007.
 
The company has posted Rs 554.11 crore net profit during the first nine months ended December 2007 against Rs 521.31 crore net profit reported in same period last year. The stock is trading at a P/E of 25.9 for its trailing twelve months earnings per share of Rs 15.70.

 
 

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First Published: Feb 03 2008 | 12:00 AM IST

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