The company is also planning to expand network of `Ceat Shoppes', its dedicated retail outlets from the current level of around 90 to around 120 by June 2000 and to around 200 by the year 2001. The company is planning to sell around 40 per cent of its output through Ceat Shoppes. Although this would involve substantial investments, it will help the company in enhancing its brand value in the long term. Ceat's radial tyre (passenger car) plant is expected to be commissioned by April, 2000. The company also plans to use the internet to expand its business and use it as a distribution channel.

This should help the company improve its sales. Once E-commerce comes into play in India, this could lead to substantial jump in company's sales. The stock is currently trading at a PE of 9.58 times is expected to see some improvement in its valuations in next few trading sessions. Dial A for ADRMahanagar Telecom Nigam Limited's decision to list on New York Stock Exchange (NYSE) could see operators flocking to the counter. The scrip is currently trading at Rs 190.80. The company's decision to list its ADRs on NYSE before the end of January could see the stock price shooting.

In the recent past, the market has jacked up the price of the scrip (even non-software scrips like ICICI) which have been listed overseas. Going by the same rationale, it is reasonable to expect a rally in the stock before the end of January. The company's decision to opt for ADR instead of GDRs is favourable as its GDRs are trading at $ 9.85 against the issue price of $ 11.96. The company has decided to give its GDR holders an option to convert their GDRs into ADRs.

According to market sources, the company is exploring options of participating in Sun TV's internet venture. While the company has not confirmed these rumours, the exact nature of participation/ company-operation is not known. In an unrelated move, the company has decided to be aggressive in its internet business. In a move to capture more customers, away from its competitors, it has reduced the internet tariffs further by around 15 per cent.

Any confirmed and concrete news about its tie-up with Sun TV's internet venture in the interim period would also be a positive for the stock. Tea time at HLL.

With Hindustan Lever Limited confirming that it is currently in midst of negotiations with the promoters of Rossel Industries to take over the same, the stock is in for a rally. HLL is changing hands at Rs 2494.5 whileit crossed Rs 2500 during the trading session on Monday. The scrip is currently trading at a PE of 55.69, which low for a MNC FMCG company.The acquisition will further strengthen the packed tea business of HLL, where it already a leader. Last year, Rossell Industries earned a profit before tax of Rs 6.32 crore. The company's net profit was Rs 5.81 crore and total production stood at 95.79 lakh kilogram. The company has an equity base of Rs 10.12 crore. The company reported a net loss of Rs 13.54 crore in the first quarter of current year.

-Sunita Nagpal