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Summary
of Contents
PULSE
TRACK
SHAREKHAN
SPECIAL
IT
earnings preview
Given the
robust demand environment, the front-line information technology
(IT) services companies are expected to maintain the growth momentum
in Q2FY2007 also. We expect the volumes to grow in the range of
6.5-10% sequentially for the quarter. The depreciation of the rupee
would further aid the overall growth in the revenues (based on the
average exchange rate during the quarter). However, the impact of
the exchange rate fluctuation is likely to be lower in Q2.
Especially in terms of the translation gains (that means lower other
income), as the end of the period exchange rate was more or less
stable as compared to Q1.
STOCK
UPDATE
Orient
Paper and Industries
Cluster: Vulture's
Pick
Recommendation: Buy
Price target: Rs800
Current
market price: Rs612
Orient Paper to raise Rs175
crore
Orient Paper & Industries at its board meeting
today has decided to raise Rs175 crore through a rights issue. The
proceeds of the rights issue will be utilised towards the expansion
of its cement capacity by one million tonne to 3.4 million tonne,
enhancing its tissue paper capacity by 20,000 tonne, setting up of a
captive power plant (CPP) and repayment of debt. The current issue
size is in contrary to our earlier estimate of Rs100 crore, as the
company had earlier planned to raise the cement capacity to 3
million tonne as against 3.4 million tonne as per the current
plan. | 
