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FALLEN SHARES NOW TRYING TO LOOK UP

REAL ESTATE A TURNS AROUND? There are some construction cos. which are not affected by the change in the Tax rules as they do not sub contract. Era Constructions (NSE/BSE: 530323 Rs.332.75) the RBI has now allowed FII-buying in the counter up to 40% of the share capital. FII-holding in Era Constructions was 22%, as of December 2006. The scrip has fallen by 32% in the past few weeks. From a high of Rs 447.05 on 19 February 2007, the scrip slumped sharply to Rs 301 by 6 March 2007, under sustained selling pressure.

Era Constructions reported 148.10% jump in Q3 December 2006 net profit to Rs 19.90 crore (Rs 8.02 crore). Net sales for the December 2006 quarter jumped 143.40% to Rs 205.17 crore (Rs 84.31 crore). Net profit was boosted by other income of Rs 3.14 crore (Rs 0.43 crore).
A special purpose vehicle (SPV) had been incorporated to execute the highway project, and the concession agreement was also signed with NHAI for this purpose. The contract will be executed by the company over a period of two and a half years, and the total annuity per annum is Rs 53.06 crore during the concession period of 17 1/2 years. The estimated cost of the project is 300 crore.

Era Constructions constructs industrial complexes, residential buildings, multiplexes, supermalls, power projects and airports. The company is diversifying its revenue stream by entering into new segments such as irrigation and BOT projects.

Bombay Dyeing jumped nearly 10% to Rs 515.95, as the stock edged up for the second day in a row after the huge battering it had taken in the past two months. It was the top gainer from 'A' group. From Rs 788 on 4 January 2007, the stock had plunged to Rs 441.90 by 7 March 2007. Cooling of real estate prices weighed on the stock. Bombay Dyeing has huge real estate property in Mumbai, which it plans to develop and that had been a key trigger for the stock in the past 1 year or so.

A highly knowledgeable reader has sent us this information on Garnet Construction:

Garnet Construction (BSE: 526727 Rs, 47.85) - With the melt down in market especially in the realty sector, Garnet construction has come down to Rs 47 from the highs of Rs 104. The company has bought in the suburb of Mumbai called Mira Road 400 acres of land where development is going on. The company would have an EPS of Rs 9-10 for FY07 but the real story would be FY08 where the company would have an EPS of Rs 25-30 and at a conservative PE of 5 times the price should double from here.
The company has announced that its sales for FY08 would be about Rs 125 crore up from Rs 35 crore it would have in FY07 and its NP margin being 20%, the profit for FY08 should be about Rs 25 crore which on an equity of Rs 8 crore would give an EPS of RS 30.

Drug maker Nicholas Piramal surged nearly 5% to Rs 227.80, and was the third biggest gainer from 'A' group. The Union Budget 2007-08 has been favourable for the pharma sector. In the Budget, the weighted average deduction of 150% under section 35 (2AB) of the income tax act for expenditure relating to in-house research and development (R&D), has been extended by five years, up to 31 March 2012, encouraging companies to focus on R&D.

Tele data Informatics (NSE/BSE: 532358 Rs.40.80) When popular shares were hitting the lower circuit Tele data was in demand and hit the 5% upper circuit at Rs.40.80 when normalcy return to the market this share can go places.

Karuturi Networks (BSE: 531687 Rs.172.20): The co is the largest rose exporter in the world. It has already declared a one for one bonus. On good results and bonus the shares went up to Rs.250 have fallen in the market crash to Rs150 and now on an uptrend.

The Board also took on record the following: 1. Closure of the USD 25 Million Zero Coupons FCCB issue at a conversion price of Rs 240/- per share. 2. The Board acknowledges the following FII investor — as stake holders in the Company. a. Deutsche Bank b. Credit Suisse First Boston c. Lehman Brothers d. Morgan Stanley e. Bear Sterns f. Old Lane UK g. Hollinger Asset 3. The allotment by the Government of Ethiopia of 450 hectares of land to the Company's subsidiary - Ethiopian Meadows PLC for its Expansion plans, with an extended tax holiday of 7 years. In the light of the special recognition accorded to the Company's activity in Ethiopia, the Board urged the Managing Director to consider Expanding the Floriculture facility to a 225 hectare project to make it the largest floriculture project. 4. The board acknowledged that the Company needs to also parallel pursue in organic growth through acquisitions and urged the Managing Director to continue price negotiations with all target Companies.

WATCH THIS NEW LISTING: Aditya Birla group flagship Idea Cellular on Friday surged 14.06 per cent over its issue price to close at RS 85.55 in its debut trade at the Bombay Stock Exchange and joined the league of top 30 companies in terms of market capitalisation. The scrip gained Rs 10.55 to close at Rs 85.55 over its issue price of Rs 75 on Friday after surging to an intra-day high of Rs 94.25 and touching a low of Rs 84 during the day on the BSE. Heavy trading was witnessed at the counter on Friday with over six crore shares changing hands at the BSE.

Idea Cellular, which listed its 259.28 crore equity shares of Rs 10 each today, had opened with a 23 per cent premium at Rs 92.40 over its issue price on the Bombay Stock Exchange. The IPO of Idea Cellular had received robust response from investors for its 32.69 crore shares on offer, getting over subscribed 57 times with an overwhelming demand from qualified institutional buyers. In a normal market this share would have flared up. There were FII buying in this scrip on Friday.