EID Parry (India)
Reliance Growth Fund recently bought 23.94 lakh shares in EID Parry (India), more than doubling its stake from 21 lakh shares (2.68 per cent) to 45 lakh shares or 5.04 per cent. The stock has suffered a 36 per cent erosion from its peak of Rs 267 on August 7,2008. During the last fortnight the company’s board approved a buyback of shares equivalent to 10 per cent of its paid-up capital at a maximum price of Rs 160 a share. The sugar producer swung into the green in the September quarter, reporting a profit of Rs 611.89 crore. A major chunk of this profit came from the sale of a 47 per cent stake in Parryware Roca to Roca Bathroom Investment (Spain) in July from which it got Rs 747 crore. Revenues surged 69 per cent to Rs 272 crore in the period. There is talk in the market that the company is eyeing other sugar mills in Tamil Nadu, Andhra Pradesh and Karnataka. EID’s one million tonne sugar plant, a JV with Cargill Asia Pacific Holdings Pte Ltd, is expected to be fully operational by 201 0.This should bring a strong growth in revenues.
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