Month: July 2007

At its upper circuit limit, the scrip touched its all-time high.

The dairy products maker announced a liberal bonus of 1:1 after market hours yesterday, 23 July 2007.

The scrip had touched a low of Rs 49.05 so far during the day. Its 52-week low was Rs 15 on 20 November 2006. At the current price of Rs 49.05, the scrip trades at a PE multiple of 15.67, based on the year ended March 2007 EPS of Rs 3.13.

The Modern Dairies scrip had gained 70.36% in the one month to 20 July 2007 versus the Sensex’s 7.35% gain. It added 101.13% in the past three months against the Sensex’s 12% return.

Satyam Computer Services has announced strategic initiatives to strengthen its presence in South Africa.

The company is banking on a sizable number of contracts emanating from South Africa in the coming years and sees potential in providing IT solutions to the banking & financial, energy & utilities and government sectors.

As part of its global strategy, the company has also recruited and trained 50 South African technical graduates in the last one year. The first batch of 20 has been successfully deployed in projects in South Africa. Essentially an employment and skilled enablement program supporting the RSA’s BEEC, the company plans to hire almost 200 more local technical graduates, train them in India and bring them back to South Africa to associate with various customer projects.

Currently, the company serves 6 of the largest firms in the country, employs over 120 technical resources at customer locations and has offices in Johannesburg and Cape Town.

Dayim Punj Lloyd Construction Contracting company, a joint venture company of Punj Lloyd, a global EPC services provider in energy and infrastructure domains, has secured its first order from Saudi Kayan Petrochemical company (SABIC) in KSA. The EPC value of the contract is US $ 79 million.

Under the contract, Dayim Punj Lloyd, on EPC basis, will construct 8 tanks for DM Water, Fire / Service Water, MEG and crude storage and one sphere for mixed butanes storage for offsite and utility of saudi kayan petrochemical complex at Jubail Industrial city, KS.

The major highlights of the project will be blast overpressure design for 5 tanks, FEA analysis for large bore nozzles for two tanks. Dayim Punj Lloyd will be constructing the largest tank – 71 dia x 18M high, cone roof carbon steel apart from three tanks of stainless steel 304L, max size 40.5M dia x 18 M high, cone roof. The work is scheduled to be completed by January 2009.

Dayim Punj Lloyd was formed with the joint venture of the company with His Royal Highness Prince Khalid Bin Bandar Bin Sultan (KBS), Kingdom of Saudi Arabia, in May 2006. Formed to identify new business opportunities in Saudi Arabia, it will serve as a powerful vehicle for both companies to expand roles in Saudi Arabia by offering the best of each company’s expertise and a dedicated service and support organization. Dayim Punj Lloyd is a jointly owned company in which the Punj Lloyds has 49% stake.

ICICI Bank saw a sharp increase in its loan defaulters in the past quarter. Net non-performing assets [NPA] as a percentage of net customer assets increased from 0.98% at the end of March to 1.3% at the end of June. An increase of 0.32% in just 3 months is a cause of concern for many Banking analysts.

The stock price of ICICI Bank is on the rise mainly because of its subsidiaries – ICICI Insurance.

We personally don’t recommend ICICI Bank to our investors however, HDFC Bank in the Private Sector and Bank of Baroda under the public sector are our favorite picks. But certainly not at this level, BUY only when the market corrects.

UTI Bank has successfully priced its offering of 14.13 million GDRs, aggregating US $ 218.07 million. Each GDR, representing one underlying share, was priced at US $15.43 and will be listed on the London stock exchange. This represents a discount of 1.7% to the closing price of the bank’s GDR on 20 July 2007.

In addition, the bank has determined the issue price of the equity shares to be offered in the proposed qualified institutional placement (QIP) to be Rs 620 per share. The size of the QIP will be Rs 1,752 crore.

Further, the bank proposes to allot, on a preferential basis, 2,56,21,076 shares to its promoters at Rs 620 per share aggregating to Rs 1,588 crore.