GMDC scrip trades at a premium on BSE after first-half results
FE Investor Bureau
New Delhi, Jan 9: Gujarat Mineral Development Corporation's debut on the Ahmedabad Stock Exchange would have disappointed many investors. Even now it is quoting at a discount to its offer price on the ASE. But investors now have reasons to cheer. The scrip is quoting at a premium on the Mumbai Stock Exchange where it was listed recently.The listing on ASE preceded the announcement of its first half results, while the listing on BSE followed it. On ASE it was trading around Rs 117 and on BSE Rs 140 on Thursday. The stock listed at a premium of Rs 11.25 to the offer price of Rs 130 on the ASE, only to fall to a low of Rs 119.75 the following day. On BSE, the scrip listed at a premium of Rs 11.75 to the offer price on January 5 and touched a high of Rs 144.8 during the day with a high trading volume of 3.03 lakh (1289 trades). On January 6, the scrip improved its premium to the offer price and closed higher at Rs 144.5 with a trading volume of 1.49 lakh. In the following day, both the scrip price and the
volume saw a spurt and 2.18 lakh shares were traded at a price of Rs 146.25 (the stock touched a high of Rs 147.75 which is the highest quotation for the scrip since its listing on BSE). On January 8, although the share closed lower compared to the previous closing price of Rs 146.25 at Rs 140, volumes jumped to 3.41 lakh (11,412 trades). At present, GMDC commands the highest trading volume in B2 group. GMDC reported almost 44 per cent jump in net profit to Rs 37.39 crore for the first-half of the current fiscal compared with Rs 25.98 crore for the corresponding period of the last year. However, provision for taxation has been lower at Rs 22.04 crore against Rs 23.12 crore in the last fiscal's first-half. Interest cost dropped by 79 per cent to Rs 34.76 lakh. However, first-half figures for sales and net profit are way behind the projections for the current fiscal. Against a full-year targeted net profit figure of Rs 96.31 crore, the company has achieved a PAT of only Rs 37.39 crore (38.8 per cent) for
the first six months. Against a targeted sales of Rs 258.42 crore for the full year, GMDC has achieved Rs 107.54 crore (41 per cent) for the half-year period. The scrip is currently trading at a price-earning multiple (based on the annualised EPS of Rs 23.5 for 1997-98) of only 5.95 which leaves scope for further appreciation. However, the catch is whether the company will be able to achieve its full-year profitability projections?
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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