The Hindu Business Line : FDC in the limelight

The company's board has recommended a final dividend of 50 per cent on the post-bonus equity capital. This is in addition to an interim dividend of 125 per cent already paid. The final recommendation placed the annualised dividend for 2003-04 at 225 per cent. It issued bonus share in the ratio of 1:1 raising the authorised capital to Rs 25 crore from Rs 15 crore.

The Re 1 stock closed at Rs 41.4, up 5 per cent on the BSE. On the NSE, it gained by 5.61 per cent. There was a sharp rise in traded volume in the counter on the BSE at 4,11,370 shares against its last five sessions average volume of 32,380 shares. On the NSE, 7,48,588 shares were traded with seven block trades. On the BSE, 35 per cent of the traded quantity was marked for delivery. On the NSE, 36 per cent of the traded quantity was delivery-based. This also suggested substantial trading and investment interest in the counter.

At today's closing price, the stock traded at 11.7 times its trailing 12-month earnings per share of Rs 3.5.Mr Harshjit Oza, an analyst at moneypore.com, said that a section of market players has, of late, spotted the stock and is ready to punt on its future earning growth. In April this year, FDC said it was pursuing a proposal for entering into strategic partnerships in the form of joint ventures in Russia, South Africa and Nigeria.

FDC is expected to commence its marketing activities in the current year. The company has indicated that its efforts to file three abbreviated new drug applications in the US were on track. It added it has completed the registration of 652 dossiers in 47 countries.

The company is also in the process of setting up a manufacturing unit in Himachal Pradesh for solid dosages and sterile opthalmics/injectables.

In the Chandavarkar family-controlled FDC, Enam Financial Consultants held 3.13 per cent stake as on March 31, 2004.