Stocks in the News

Mahindtra & Mahindra (M&M) will replace Hero Hondo Motors in the Bombay Stock Exchange's (BSE) 30-share index, Sensex, effective July 9.

The stock is re-entering the Sensex after a gap of more than five years. In January 2002, Hero Honda Motors replaced M&M in the BSE index.

Mahindra and Mahindra, a home-grown automobile major, is into manufacture and marketing of utility vehicles, light commercial vehicles and tractors.

The company is the market leader (by sales) of utility vehicles and tractors in the country.

Hero Honda Motors (HHML), a JV company promoted by Hero Cycles of India and Honda Motor Company of Japan, is the world's largest two-wheeler manufacturing company.

The M&M stock has gained more than 22 per cent in the last one year compared with over 15 per cent fall in the market price of HHML. The M&M stock appreciated from Rs 597.75 on May 25, 2006, to Rs 731.75 on May 25, 2007, while on the other hand, HHML declined to Rs 677.20 from Rs 797.85 during the same period.

NIIT Technologies

The stock of NIIT Technologies hit an all-time high of Rs 620.05 after the company declared a maiden bonus. The stock appreciated 17 per cent during the week, from Rs 518.70 on May 18 to Rs 605.95 on May 25. The company has declared a bonus in the ratio of 1:2, or one equity share for every two shares held.

The company has posted 95 per cent rise in consolidated net profit to Rs 129.24 crore for FY07 against Rs 66.29 crore in FY06. The total income from operations has increased 46 per cent to Rs 885.86 crore during the year compared with Rs 607.53 crore last year.

The combined volumes of the stock on the BSE and NSE have increased by 37 per cent, with 98.05 lakh equity shares changing hands during last week against 71.76 lakh shares in the earlier week.

The company has declared a dividend of Rs 6.50 a share for FY07 against Rs 6 a share in FY06.