Stocks in the news

Escorts: High on stake buy

The stock of Escorts gained more than 30 per cent after the foreign institutional investors (FIIs) picked up an additional 2.57 per cent stake in the company. Emerging Markets Management bought 21.47 lakh equity shares through the open market, thereby increasing its stake to 7.60 per cent.

The stock appreciated 31.21 per cent last week, from Rs 108.30 to Rs 142.10, while the combined volumes on BSE and NSE increased more than five fold. A total of 1.24 crore equity shares changed hands last week, compared with 24.22 lakh shares in the earlier week.

The company manufactures tractors, agri-machinery, construction machinery and auto-ancillaries. It had posted a net loss of Rs 6.24 crore in the third quarter (April-June,2007) against a net profit of Rs 1.57 crore in the previous year's corresponding quarter.

The FIIs held 20.71 per cent stake in the company, while financial institutions, banks, insurance companies and mutual funds such as UTI held a combined 20.29 per cent, at the end of the September quarter. The stock is trading at a price multiple (P/E) of 23.57 on its trailing twelve months earning per share (EPS) of Rs 6.03 on the BSE.

Marg : Big plans

The stock of Marg Constructions closed an all-time high of Rs 316.14 on the BSE. It has appreciated by 29 per cent from the earlier week's Rs 244.55. The company, engaged in infrastructure and realty development, has acquired a non-propelled cutter suction dredger named MARG Cauvery, with a dredging capacity of 2000 cubm/hour. The device would dredge at depths in the range of 5 to 25 m.

Karaikal Port, a wholly owned subsidiary of Marg Constructions entered into a memorandum of understanding (MoU) with the malaysian Pembinaan Redzai Sdn Bhd (PRSB) last month. The Malaysian entity is engaged in management and operation of forest plantations, logging, saw milling, chipping and other downstream manufacturing and related activities. It also undertakes civil engineering and construction works and project management services in Malaysia.