Date:22/12/2005 URL: http://www.thehindubusinessline.com/2005/12/22/stories/2005122202101500.htm

Back Triveni Engineering up on growth hopes

Our Bureau

Kolkata , Dec. 21

TRIVENI Engineering & Industries Ltd, a steam turbine and sugar player, has been moving up strongly even after its recent fresh public offering.

The Re-1 stock today closed at Rs 73.95 against the previous close of Rs 73.25; the stock touched its 52-week high at Rs 76 on Tuesday.

Traded quantity was 23.95 lakh shares in the counter on the BSE, against the 2-week average of over 58 lakh shares.

The company is reportedly doing well in both the business segments.

In the two quarters to September 30, sugar contributed 69 per cent of the company's turnover, while steam turbines contributed 23 per cent.

According to Mr Mukesh Modi of Anagram Stockbroking, the present trigger for the stock is provided by the strong price level followed by a good demand growth for sugar in the domestic and international market.

The company's capacity expansion plan in Uttar Pradesh was timed well, he added.

It would be able to take advantage of the incentives provided by the State Government as also ride a demand surge, which is expected to last at least for the next couple of years, sugar industry analysts suggest.

Diversion of sugarcane in Brazil for ethanol in view of high crude oil prices has boosted sugar prices and demand during the current season. This, in turn, could create reduced inventory situation before the next crushing season in the international market.

At home, the inventory level is anticipated to drop substantially too in 2006-07 to 5.3 per cent of the total consumption in the country as against the comfortable level of 25 per cent, Mr Modi said.