The shares of Hindustan Everest on the Bombay Stock Exchange are trading at a cum-bonus price of Rs 30. Although in normal circumstances, ex-bonus price would have settled around Rs 23, in the event of a jump in net losses for the full-year, the scrip could take a severe drubbing on bourses.

The company has a reserves of around Rs 12 crore against a small equity base of Rs 1.15 crore. For the first-half of fiscal 1999, the companyreported a net loss of Rs 3.5 lakh against a net profit of Rs 0.35 lakh in the corresponding period of the previous year. For the first-half, the company's sales rose marginally from Rs 12.57 crore to Rs 13.1 crore. However, higher raw material cost coupled with a slowdown in the industry as a whole eroded the company's operating margins. The promoters currently hold 36 per cent in Hindustan Everest Tools. For the fiscal 1988, the company recorded a net profit of Rs 1.37 crore on a turnover of Rs 28.06 crore. The company is into manufacturing of quality hand tools. The company markets its products under the brand name of Everest in export as well as domestic markets.

Besides exporting a major portion of its products to Germany, France, Italy, UK, USA and Japan, the company is supplying hand tools to Maruti Udyog, Bajaj Auto, Mahindra & Mahindra and Hindustan Machine Tools.

Hectic activity at India Cements counter despite poor first half

Despite a hammering of India Cements on bourses due to poorfirst-half performance, the counter has become suddenly active. On Friday (November 6), as many 5.42 lakh shares of India Cements were traded on the Mumbai Stock Exchange from the previous day's volume of merely 6000 shares. Interestingly, the share price remained constant at Rs 30.

However, on Monday, although volumes dropped to 14,000 shares, the price shot up to Rs 32.8. The scrip has been on a relentless fall in the past couple of months from a high of Rs 50 in September and touched a low of Rs 30 in November after India Cements announced a 46 per cent decline in net profit to Rs 25.67 crore. Its turnover grew by only 6 per cent to Rs 504 crore.

The scrip, which went ex-rights on October 26, is currently trading at a price of around Rs 32. The Rs 160-crore, 1:1 rights issue is being offered at Rs 25 against the current price of Rs 32. The record date of the rights issue is being fixed as November 23.

The company is coming out with the rights issue to pay financial institutions Rs 70 crore for theshares of Raasi Cement they had sold to India Cements in June, 1998. The company currently holds 91 per cent of Raasi Cement's equity and had agreed with the institutions to pay them at a later date.