Financial Daily from THE HINDU group of publications
Friday, Nov 21, 2003
Power transmission cos in the limelight
Kolkata , Nov. 20
THE stocks of power transmission companies on Thursday continued their upward journey on buying support from a set of select broking firms.
KEC International, leader among the pack, hit its 52-week high at Rs 71.45 (Rs 59.85).
The counter recorded a traded quantity of over a crore shares on the major bourses. The Jyoti Structures stock was up around 7.2 per cent at Rs 91.6 on significant increase in volumes, while Kalpataru Power Transmission gained 16 per cent at Rs 76.15.
According to dealers, Kotak Securities was one of the leading buyers in these stocks.
According to analysts, turnaround and sharp improvement in fundamentals are reasons for the current attraction in these stocks. Both in the exports and domestic sales fronts, these companies are expected to do better in the coming quarters.
Apart from reforms in the power transmission sector, which expected to improve cash flow and orders for these companies, recent positive news flow in operations have kept the stocks buzzing.KEC has recently bagged overseas contracts worth more than Rs 182 crore from Kuwait and Abu Dhabi.
Jyoti Structures has received an order worth Rs 42 crore from the Maharashtra Electricity Board. Last month, it bagged a Tunisian order worth Rs 131 crore.
Kalpataru, which has clients such as Power Grid Corporation, NTPC and SEBs, began commercial production at its new 7.8 MW biomass power plant in Rajasthan.
Jyoti Structures today informed the exchanges that it has completed private placement of 20 lakh shares.
As the perception is gaining ground that it is one of the most happening segment in the power sector, a section of investors are either making entry or increasing their presence in these counters.
According to Mr Devarsh Vakil of Anagram Stockbroking, while KEC, the second largest transmission company in the world, is a turnaround case, Jyoti Structures and Kalpataru are buoyant on substantial earnings growth potential.
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