Stocks In Action: November 20, 2012

Kingfisher Airlines had a meeting with its lenders and the airline is expected to submit a revival plan by the end of this month. It’s been a week since the USD 2 billion United Spirits – Diageo deal in accordance to which Vijay Mallya sold a controlling stake of 53.4 billion in United Spirits. Though the deal has just come through and the impact on Kingfisher Airlines would take time to pan out, movement has been taking place on reviving the airline. This would result in volatility in the stock price of Kingfisher Airlines.

Polaris Financial Technology said it is planning to allocate USD 100 million to acquire two to three product companies in the coming four years. This allocation is part of the company’s target to double revenues in the aforementioned time frame wherein it plans to achieve this goal by fuelling it with inorganic growth. Funding these acquisitions would take place through a combination of cash flows and leveraging, said the management. This would positively impact the share price of Polaris Financial Technology today.

Titan Industries said that it is aiming to hit a profit before tax of Rs 1000 crore in this fiscal year as against Rs 838 crore clocked in the previous year. To assist achieving this target, the company has plans to invest Rs 200 crore in retail and manufacturing initiatives. It also plans to bag revenue by developing the e-commerce business. Titan also plans to increase its number of outlets to more than double and plans to aggressively launch new products. This would result in an upward trend in the stock price of Titan Industries today.

Atul Auto announced its Q2FY13 results yesterday. The company announced a YoY growth in net profit of 23 per cent, to Rs 6.21 crore. The company announced big plans for growth in the future whereby it intends to increase capacity from the current 24000 units per annum to 48000 units per annum by the end of the year. Moreover, the company has set a target of achieving Rs 1000 crore turnover by FY 2015-16. Along with the strength in financials, the company was also robust on volumes. Sales volumes of Atul Auto grew by 11.52 per cent to 7578 units in Q2FY13 from 6795 in Q2FY12. This would result in an upward trend in the stock price of Atul Auto.

Monnet Ispat said it was to acquire majority stake in a 25 million tonne coal mine in Columbia which has an annual production capacity of 50000 tonne per annum. The mine has reserves of both coking and non-coking coal and the deal is likely to be settled in a couple of months. The Monnet Group plans to invest around Rs 2,700 crore this financial year. Of this, around Rs 700 crore will be invested in the new steel plant. The rest Rs 2,000 crore would be used to set up power capacities, according to Business Standard.  An uptick is expected in the stock price of Monnet Ispat today.