Buoyed by the proposed restructuring and international listing, McDowell & Co scrip has zoomed on the bourses. In fact, the stock has also survived the general bear hammering. In the past six trading sessions, the scrip has gained almost 46 per cent, from Rs 46.65 on April 17 to Rs 67.5 on April 26. On Monday, nearly 1.22 lakh shares were traded. The latest move by liquor baron Vijay Mallya to restructure his flagship companies -- McDowell & Co and United Breweries -- and international listing are expected to improve the valuations of these scrips. Vijay Mallya is making a five-year blueprint to revamp these companies. The restructuring plan will focus on greater transparency in functioning and systems. Global listing would unlock value inherent in the bear and spirit business. The spirit business will be restructured by merging a number of small distilleries with McDowell & Co.Although United Breweries will also be restructured and listed on international bourses, the stock is yet to react to the news. Thescrip gained only Rs 9.45 in the past one month. United Breweries will move out of real estate and investment divisions and will focus on beer manufacturing and marketing. UB's leading brand King Fisher is likely to be launched in US. The group is also planning some acquisitions abroad.Krone Communications impresses
The 148 per cent jump in net profit of Krone Communications has perked up the scrip on the bourses. On the Bombay Stock Exchange, the stock gained 11.15 per cent in the past eight trading sessions, from Rs 68.85 on April 15 to Rs 80 on April 26.
The company has recorded net profit of Rs 2.68 crore for the first quarter ended March 31, 1999 against Rs 1.08 crore in the corresponding period of the previous fiscal. In fact, the first quarter net profit is even more than the full year figure of Rs 2.48 crore for 1998. The impressive performance on the net profit front is mainly due to a 58.37 per cent surge in sales. Net sales rose from Rs 10.69 crore to Rs 16.93 crore.
Expenditureshot up by 49 per cent to Rs 13 crore. Interest cost increased from Rs 2 lakh to Rs 10 lakh for the first quarter of 1999. Provision for tax increased from Rs 1.01 crore to Rs 1.4 crore. On an equity base of Rs 4.6 crore, the annualised earning per share (EPS) works out to Rs 23.3. The current EPS discounts the latest market price of Rs 80 by an attractive price-earning multiple of 3.43.The company manufactures and distributes its products range through an international network of subsidiaries to over 90 countries. It has developed and introduced to the world market LSA PLUS quick connector technique for wiring and distribution in telecommunication network.The company recorded a net profit of Rs 2.48 crore on sales of Rs 35.17 crore for fiscal 1998. Net profit was up 161 per cent against Rs 95 lakh in the previous fiscal. Net sales at Rs 35.16 crore showed a 116 per cent growth over Rs 16.26 crore in 1997.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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