A sharp jump in net profit at Rs 1.66 crore against a full year loss of Rs 1.3 crore last year has made the scrip very attractive. After the announcement of first quarter result in the last week of July, the scrip has spurted from Rs 200 to the current level of around Rs 420. The scrip on August 21 after touching an all-time high of Rs 427 closed lower at Rs 386 on the BSE. After the announcement of the first quarter results, the annualised earning per share (EPS) of around Rs 19.3 discounted the scrip by a price earning multiple of just over 10, which at the current market price of around Rs 400 has gone up to 20. The turnaround has resulted in a spurt in the activity in this counter and the averagedaily turnover has risen to 3,000-5,000 shares a day from around 300-400 shares a month ago.A section of the brokers in Bombay were also expecting an open offer at a much higher price to the market price from this 74 per cent subsidiary of Bestfoods Inc. in order to delist the company. However, the company has firmly denied that the company for the time being has no such plans to delist the company from the bourses.

Corn Products Company (India) Limited is in the process of improving its product range with the acquisition of `Captian Cook' brand salt. The foray into the salt business would help the company to make an entry into the mainstream food products. In India, Corn Products is better known for brands such as Knorr soup, Rex jelly and Brown & Polson custard powder. Since DCW also sells atta (wheat) under the Captain Cook trademark, the acquisition would also give CPC the right to acquire the atta business. For the time being, though, CPC plans to stick to salt and is interested only in the saltmanufacturing facilities. Begining October this year, Corn Products will be changing its name and will be known as Inernational Bestfoods Ltd to reflect its status of a `100 per cent branded foods company'. Consequent to the spin-off of the corn refining business of the parent company, CPC International Inc changed its name to Bestfoods to signify the shift to a 100 per cent foods company.

The company's move to discontinue low-volume low-margin products has paid off. In line with this, Corn Products closed down its jam manufacturing facilities at Dharwar in Karnataka. Corn Products Company (India) on a 20 per cent growth in sales to Rs 12.66 crore in the first quarter has reported a sharp jump in net profit to Rs 1.66 crore, up from a net profit Rs 0.35 crore in the corresponding period of last year. Knorr soups was the major revenue earner which witnessed a growth of over 150 per cent in value over the previous year. Incidentally, the Knorr range of soups is a top seller in the overseas market with annualsales exceeding $ 2.5 billion. Although analysts point out that the turnaround in the first quarter has to be taken with a pinch of salt. In the first half of 1997-98 also, the company managed to report a net profit of Rs 1.28 crore, but it slipped badly in the second half with a net loss of Rs 2.57 crore, thereby giving a net loss of Rs 1.3 crore for the year ended March 1998.