Heard on the Street
Yet another fallen angel is seeing signs of renewed interest.
Indiabulls eyeing Blue Bird?
Yet another fallen angel is seeing signs of renewed interest. Trading volumes in shares of stationery products maker Blue Bird India have spurted over the last few sessions, even though rise in stock price has been modest. The buzz in the stock is that financial services firm Indiabulls is eyeing a strategic stake in it.
While Blue Bird India company officials were unavailable for comment, a senior official at Indiabulls outright denied any such move. On the face of it, Blue Bird���s fundamentals appear sound. The company reported an earning per share of Rs 9.51 for 2006-07. But its performance for the nine-month ended December 31, 2008 has been far from spectacular, with the company clocking an EPS of Rs 5.71.
Curiously, the stock has been a notable laggard since its listing less than two years. To add insult to injury, the stock did not find any takers during the raging bull run in 2007 when prices of even shady stocks were shooting through the roof. Analysts say a key reason for investor disenchantment is the fact that the company is yet to make any notable progress on the tall promise the company had made at the time of its IPO. The stock closed at Rs 42.05 on Wednesday, down 2.3% over its previous close.
Tractors India gains investor interest on warrants issue
Shares of Kolkata-based TIL (formerly Tractors India), manufacturer of mobile cranes and material handling and power equipment in India, is being accumulated by investors. The interest has emerged after the company issued sizeable amount of warrants convertible into equity shares to promoters of a leading Mumbai-based investment banking house. According to the market sources, its tie-up with Caterpillar will help in providing financing solutions to equipment buyers in India.
Further the company is planning to set up a second plant in West Bengal, catering to both export and domestic market at a cost of about Rs 200 crore. The company has already identified land for this purpose. The company has posted an EPS of about Rs 43 for the financial year 2008. Analysts estimate the company to report an EPS of about Rs 65 for financial year 2009 on a diluted equity.
This is largely due to its presence in material and port handling and power equipment, both sectors ranking high on the priority list of the government. The stock price closed at Rs 402, up 2% from the previous close.
(Contributed by Deeptha Rajkumar & Apurv Gupta)
Yet another fallen angel is seeing signs of renewed interest. Trading volumes in shares of stationery products maker Blue Bird India have spurted over the last few sessions, even though rise in stock price has been modest. The buzz in the stock is that financial services firm Indiabulls is eyeing a strategic stake in it.
While Blue Bird India company officials were unavailable for comment, a senior official at Indiabulls outright denied any such move. On the face of it, Blue Bird���s fundamentals appear sound. The company reported an earning per share of Rs 9.51 for 2006-07. But its performance for the nine-month ended December 31, 2008 has been far from spectacular, with the company clocking an EPS of Rs 5.71.
Curiously, the stock has been a notable laggard since its listing less than two years. To add insult to injury, the stock did not find any takers during the raging bull run in 2007 when prices of even shady stocks were shooting through the roof. Analysts say a key reason for investor disenchantment is the fact that the company is yet to make any notable progress on the tall promise the company had made at the time of its IPO. The stock closed at Rs 42.05 on Wednesday, down 2.3% over its previous close.
Tractors India gains investor interest on warrants issue
Shares of Kolkata-based TIL (formerly Tractors India), manufacturer of mobile cranes and material handling and power equipment in India, is being accumulated by investors. The interest has emerged after the company issued sizeable amount of warrants convertible into equity shares to promoters of a leading Mumbai-based investment banking house. According to the market sources, its tie-up with Caterpillar will help in providing financing solutions to equipment buyers in India.
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Further the company is planning to set up a second plant in West Bengal, catering to both export and domestic market at a cost of about Rs 200 crore. The company has already identified land for this purpose. The company has posted an EPS of about Rs 43 for the financial year 2008. Analysts estimate the company to report an EPS of about Rs 65 for financial year 2009 on a diluted equity.
This is largely due to its presence in material and port handling and power equipment, both sectors ranking high on the priority list of the government. The stock price closed at Rs 402, up 2% from the previous close.
(Contributed by Deeptha Rajkumar & Apurv Gupta)
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