Financial Daily from THE HINDU group of publications
Tuesday, Dec 17, 2002
Financial Daily from THE HINDU group of publications Tuesday, Dec 17, 2002 |
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Markets
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Stock Markets Videocon Intl gains on new triggers Our Bureau
KOLKATA, Dec. 16 THE Videocon International stock today saw surge in volumes compared to that on Friday on the major bourses. The price line of the stock was also upwardly mobile. The stock opened with a gain of around a rupee and after touching the day's high at Rs 34.30 on the BSE (at Rs 34.35 on the NSE), it closed at Rs 32.45, up from Friday's closing of Rs 31.20. Traded quantity in the counter jumped to 4.74 lakh shares on the BSE from Friday's figure of 45,451. On the NSE, the scrip clocked a volume of 6.61 lakh shares, up from previous day's quantity of 58,716 shares. Of the total traded shares, 33.94 per cent was up for delivery on the BSE and 37.84 per cent on the NSE. The 50-day average daily volumes on the BSE are 92 lakh shares. Of late, however, volumes have seen marked improvement. The counter has seen six digit volumes in 9 out of the past 14 sessions on the BSE and 10 out of 14 sessions on the NSE.
According to analysts and brokers, the stock has been driven by operators on three apparent triggers — opening up of a significant market for its TV set top boxes, plans for entering tablet PC market and manufacturing of mobile phones. Mr Ketan Thacker of Anagram Stockbroking pointed out that as the CAS Bill provided for the installation of the set top boxes (STB) at the viewer's end, it had opened up huge business potential for the company, which is a major manufacturer of the STBs. "The country has an estimated four crore TVs under the cable network in operation. The estimated cost of an analog STB is Rs 3,000 each, while a digital STB would cost around Rs 7,000. Even if the Government subsidises the sets (as indicated by the Union I&B Minister, Ms Shushma Swaraj) the total market size of STBs in the country would be enormous," Mr Thacker mentioned. Further, the Videocon group and Samsung Electronics Co of South Korea are believed to have finalised a pact under which the Korean company will buy out Videocon's 24 per cent stake in Samsung's Indian operations for a consideration of around Rs 250 crore, he pointed out. At the current market price, the stock is trading at 1.48 times its second quarter annualised earnings. As per broker expectations, the forthcoming cricket World Cup may also buoy up sales of Videocon TVs.
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