Pricey Fund drives into Igarashi Motors

STREET SIGNS

Motoring along

The Singapore-based Pricey Fund, who has been an active investor in India, has decided to take an exposure to Igarashi Motors. The fund is said to have bought some six lakh shares at Rs 205 levels.

Auto ancillary company, Igarashi Motors makes motors and related sub-assemblies at its plant in Chennai. The company is modelling itself to become a full service supplier (related to motors), in global markets.

According to those in the know, with the industry becoming more and more competitive, suppliers who would design, engineer and produce a particular part are likely to emerge successful.

Of the top 10 global system integrators, Igarashi is working with Bosch, Delphi, Visteon and Arvin Meritor. After a steady rise from Rs 95 levels a year back to Rs 230 levels by the end of August this year, the stock has been on the decline. Pricey Fund obviously thinks it is a good opportunity to get into the counter.

Buzz on Infotech

Foreign fund buying in Infotech Enterprises is on the rise. One Mauritius-based fund bought more than two lakh shares at the counter at Rs 425 levels.

The Hyderabad-based software services company with core competence in the niche areas of geographical information systems (GIS), engineering design and related IT services has been given a boost recently after a foreign brokerage put out a 'buy' report on the stock.

According to the report, Infotech should see a growth of 35 per cent till 2008. Analysts are also impressed by the fact that the company has won some significant deals over the past few months from Alstom (US$ 50m-52m over the next five years) and KPN ($6m over a period of 18 months).

Mumbai-based S Khan Securities notes that the company's revenue visibility has been improving on the back of multi-year deals. As for the stock, it has risen more than 200 per cent in the past year and 65 per cent in less than three months.

Smelling Coffee

The CLL products stock continues to soar. Not that anybody minds, as evidenced by Metro Fund's recent buying at the counter.

The fund is said to have bought the stock at Rs 430 levels. The Mumbai-based PL Brokerage had recently endorsed the stock with a price target of Rs 583 by September, 2006.

According to the brokerage, CCL Products India, a well-known player in the instant coffee industry, is now seeing strong growth in demand for its products as global coffee consumption is on the rise, particularly in Europe and the CIS countries.

It expects the company's EPS to jump 35.80 per cent and 54.60 per cent, to Rs.31.4 and Rs.48.6, respectively, in FY06 and FY07.

The big debt fund manager who launched its maiden equity fund some time back had bought a big chunk of CCL shares in early August.