Suven in Jeweller's good books

STREET SIGNS

Uncle Sam has decided to book profits at the Spanco Telesystems counter. The fund is said to have sold the stock at Rs 164 levels. Considering that the stock has appreciated more than 100 per cent in the past two months, that doesn't seem such a bad idea.

In fact, it has appreciated more than 75 per cent in the last fortnight alone. Of course, positive news flow has been the trigger behind the buying at the counter, most notably, the younger Ambani's plans to buy a 14.96 per cent stake in the company.

Also, Spanco recently bagged an Rs 80 crore long-term outsourcing contract from BSNL for its domestic call centre operations, which operates under the name Sparsh. With such big profits in such a short span, no wonder Uncle Sam was in a hurry to offload the shares.

Gunning for Suven
Jeweller Fund has been quietly buying shares of pharma company Suven Life Sciences. Those in the know tell us that from the start of the year, Jeweller has bought more than five lakh shares at the counter.

Firms such as All Wise Capital has been singing high praises of the company, noting that Suven has graduated from being a CRAMS player to a full service R&D player. In fact, it is the company's potential in the R&D space that has made players sit up and take notice.

According to All Wise, the company can expect a 30 per cent revenue growth in FY06 and a 50-60 per cent growth in FY07. With the stock still stuck in the Rs 90-100 band, it has significant upside potential, notes All Wise.

Textile trades
A Bahrain-based bank's Mauritius-based investment arm has been making purchases at the Gangotri Textile counter. The fund is said to have bought more than two lakh shares at Rs 237 levels.

The news at the counter is that the company decided to issue 1:1 bonus to its shareholders, which will double its present equity base of Rs 4.8 crore to Rs 9.6 crore. The Rs 180-crore company has also lined up a major expansion-cum-forward integration plan at a cost of Rs 351 crore.

With the upswing in the fortunes of textile sector, it was natural that people will be in interested in the stock. The price has appreciated more than 120 per cent in the past two months alone.

In other news...
Two counters which have witnessed a lot of activity in the last few days have been IT firm KLG Systel and pharma company Granules India.

While one Emerging market manager has sold some 70,000 shares at Rs 104.36 of Granules India, domestic players have been making purchases at the KLG counter at Rs 190 levels.