Date:08/07/2005 URL: http://www.thehindubusinessline.com/2005/07/08/stories/2005070803161300.htm

Back Chowgule Steamship jumps on buyback talk

THE Chowgule Steamship stock closed with a gain of 7.53 per cent at Rs 23.55 on Thursday on market talk of possible share buy-back. However, market sources said that rather than buy-back, improvement in fundamentals has attracted some market players to accumulate the stock aggressively. On the BSE, the traded quantity crossed 10 lakh shares, five times its 2-week average.

According to dealers, the tax-free dividend yield of 4.7 per cent was also a trigger. According to analysts, the company's balance sheet, after substantial debt repayments last fiscal, has seen a facelift. Company's current debt is placed at around Rs 12.5 crore, while total assets are worth about Rs 540 crore, with cash in the bank around Rs 30 crore. It is said to be planning to acquire 4 dry bulk carriers, according to industry sources.

Its subsidiary, Chowgule Overseas Steamship, has recently acquired two Panamax carriers at a cost of around euro 18 million, which have started earning this fiscal.

Hind Ind firm on debt revamp plan

Hind Industries, a meat and beef manufacturer and exporter, has taken up a debt-restructuring plan. According to market sources, the company is understood to be in negotiation with lenders for waiver of accumulated interest for itself and its subsidiary - Hind Agro - also present in the same space.

During the fiscal 2004-05, it reported an operating profit of Rs 8 crore, but the interest cost was at Rs 3.47 crore.

The stock finished firm at Rs 19.50 with the traded volume doubling on the BSE.

Kovai Medical: Targeted?

Is Kovai Medical & Hospitals stock a target of a strategic buyer? Dealers said the stock has been witnessing a surge in traded volumes in the past fortnight. "Targeted steady buying in this Kerala-based healthcare company's stock could be part of a warehousing strategy, which may culminate in a substantial acquisition by a new investor", a dealer at an institutional brokerage said.

The 350-bed hospital reported a Rs 1.74-crore net profit on a total sales of Rs 40.62 crore in 2004-05. The equity base of the company is Rs 10.94 crore.

A fund manager felt that the current price vis-à-vis the profitability makes the stock attractive for long-term accumulation. The stock on Thursday closed at Rs 42.80, down 7 per cent on profit taking.

Jayanta Mallick