Heard on the Street: Welspun India stake sale buzz revives
Shares of Welspun India rose 5.2% to Rs 48.40 on Wednesday after speculation that the company is looking to sell a stake to a foreign firm resurfaced.
By ET Bureau |
Welspun India gains 5.2% as stake sale buzz revives
Shares of Welspun India rose 5.2% to Rs 48.40 on Wednesday after speculation that the company is looking to sell a stake to a foreign firm resurfaced. The buzz is that US-based department store retailer JC Penney is in talks with the company to buy a stake. A Welspun official denied the company intends to sell a stake. “Such rumours have been going on for the last couple of months, but this is not true.” Earlier, the speculation was that other global retailers were in the race to buyout Welspun. The talk is some influential market operators, who own Welspun shares, are spreading the rumour to avert a slide in the stock. The company’s net profit in the October-December quarter of 2010-11 fell to roughly.`47 lakh from Rs 3.6 crore in the previous quarter.
Railway order hopes drive up Texmaco shares
Some brokerages are pushing Texmaco Rail and Engineering to clients after a gap encouraged by the company’s fourth quarter earnings beat analysts’ estimates. Investors are betting on Texmaco on hopes that the company would get a significant chunk of an upcoming tender from Indian Railways to make 18,000 wagons. The company has an order-book to manufacture 3,500 wagons, analysts said. The stock, which was frozen at 20% upper circuit of Rs 31.50 on Wednesday, has fallen 52% so far in 2011 against the 13% drop in BSE-500 index. Analysts said investors have generally stayed away from companies in the rail sector since 2009 after Lalu Prasad Prasad’s successful stint as railways minister during which he is credited to have turned around Indian Railways.
Contributed by Nishanth Vasudevan
Shares of Welspun India rose 5.2% to Rs 48.40 on Wednesday after speculation that the company is looking to sell a stake to a foreign firm resurfaced. The buzz is that US-based department store retailer JC Penney is in talks with the company to buy a stake. A Welspun official denied the company intends to sell a stake. “Such rumours have been going on for the last couple of months, but this is not true.” Earlier, the speculation was that other global retailers were in the race to buyout Welspun. The talk is some influential market operators, who own Welspun shares, are spreading the rumour to avert a slide in the stock. The company’s net profit in the October-December quarter of 2010-11 fell to roughly.`47 lakh from Rs 3.6 crore in the previous quarter.
Railway order hopes drive up Texmaco shares
Some brokerages are pushing Texmaco Rail and Engineering to clients after a gap encouraged by the company’s fourth quarter earnings beat analysts’ estimates. Investors are betting on Texmaco on hopes that the company would get a significant chunk of an upcoming tender from Indian Railways to make 18,000 wagons. The company has an order-book to manufacture 3,500 wagons, analysts said. The stock, which was frozen at 20% upper circuit of Rs 31.50 on Wednesday, has fallen 52% so far in 2011 against the 13% drop in BSE-500 index. Analysts said investors have generally stayed away from companies in the rail sector since 2009 after Lalu Prasad Prasad’s successful stint as railways minister during which he is credited to have turned around Indian Railways.
Contributed by Nishanth Vasudevan
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
