Kotak Mahindra UK and Reliance Capital acquired three lakh and 21 lakh shares respectively. Prudential ICICI, Sahara and Taurus are some of the other houses who together hold around 3.95 lakh shares of the company as of last month. At a forward price to earnings multiple (PE) of 11.75 times, analysts are positive about the stock.
The Uttar Pradesh-based company has recently approved a mega expansion of Rs 565 crore to nearly double its crushing capacity from 17,000 tonnes per day to 31,000 tpd. Its plans also include the setting up new units and co-generation plants.
The company will also diversify into the distillery business by setting up its first 120 kilolitre per day (klpd) distillery. The company also plans to merge with itself its wholly owned sugar subsidiary Nanglamal Sugar.
Stock of the week
ABB leapt 13 per cent on the BSE during the week contributed by the overall buoyancy in the capital goods sector and later by the handsome results for the quarter ended December 2005. The power technologies and automation major registered a 42 per cent jump in its profits with sales not so behind the race with an increase of 31 per cent to Rs 2912 crore, y-o-y. The encouraging factor was improvement in its operating margins up 190 basis points primarily due to the softening steel prices. The order book of the company swelled by 49 per cent to Rs 1016.60 crore, enhancing the future-revenue visibility. Further the order intake has been decent despite being calculated on a higher base. Strong investments in both power and manufacturing sector will augur well for the company. Though currently the valuations are stretched as the stock is trading at a price-to-earnings ratio of 48x the stock is likely to command a premium in the near future. | ||||||||||||||||||||||
