Bajaj Electrical surged 7.42%, to Rs 475, following reports that it is a frontrunner for the 2010 Commonwealth Games contract, valued at Rs 500 crore

Bajaj Electrical advances anticipating mammoth order. Bajaj Electrical surged 7.42%, to Rs 475, following reports that it is a frontrunner for the 2010 Commonwealth Games contract, valued at Rs 500 crore. The stock moved in a broad range of Rs 485 and Rs 444 on BSE and clocked a volume of 3,928 shares.

Over the past few months, the stock witnessed a downtrend, declining from Rs 502.80 on 27 July 2006, to slide to Rs 438.50 by 11 September 2006, on consistent selling. Here, it found support and began advancing to Rs 442.15, by 19 September 2006.

Bajaj Electricals'(BEL) engineering and projects business unit (E&P BU) recently bagged orders worth over Rs 70 crore. The company has a Rs 53.75 crore NTPC order to design, supply and install five 33/11KV sub-stations, 240 km of 11 KV lines and 400 km of LT lines.

The company has also bagged a Rs 7.10 crore Bhel contract for station lighting of the 2x250 Mw Bakreshwar thermal power project in West Bengal. Besides, the company's transmission line tower business has also received an order for Rs 10.57 crore from GTL, to supply 50/60 mtr ground-based telecommunication towers.

The Jaipur Development Authority has also placed an order for decorative cast iron poles on Tonk road, from Ajmeri gate to Jaipur airport flyover. The order involves supply as well as installation of the cast iron poles.

In addition, the company has also won a Rs 7 crore MMRDA order for providing signages on the Western and Eastern express highways, as also an order from Reliance Energy for lighting up the Western express highway and the Jogeshwari-Vikhroli Link Road with Bajaj galvanised smartpoles.

Bajaj Electricals reported 35.70% rise in net profit, to Rs 3.69 crore in Q1 June 2006, compared to a net profit of Rs 2.72 crore in Q1 June 2005. Net sales rose 37.90%, to Rs 189.54 crore (Rs 137.45 crore).

Bajaj Electricals (BEL) has interests in lighting, consumer durables and galvanised structures, and occupies a dominant position in most businesses. Incidentally, all of its businesses are now on a strong growth path.

Reliance Communication continues to sparkle

Reliance Communication continues to sparkle. Reliance Communications advanced 3.77%, to Rs 344 on high volume, extending its recent surge. The counter clocked 17.91 lakh shares on BSE. At the current market price of Rs 344, Reliance Communication trades at 33.06 times its Q1 June 2006 annualized EPS of Rs 10.30.

The counter witnessed a rally after being battered in the May-June market meltdown. From a low of Rs 202.40 on 13 June, it rose sharply to Rs 331.30, by 19 September 2006, on strong buying. It surged 63.69%, during this period. Promoter group hiking its stake in the company through the secondary market only added fuel to fire. Post acquisition, their holding in the company has gone up to 42.23% in June 2006, which was 39.72% in March 2006. Also, Reliance Communications has been included in the NSE's futures & options (F&O) segment from 15 September 2006, the market lot of which is 700.

As per reports, Anil Ambani and associates (ADAG) have steadily hiked their stake in Reliance Communications, and it has risen to 66.6%, following corporate reorganisation of the company.

Recently, Anil Ambani promoted telecom company applied to the department of telecommunications (DoT) for a GSM spectrum in 21, of the 23 telecom circles, of the country under the unified access service license.

Reliance Communications owned Falcon Cable System, connecting India with the world, was inaugurated on 5 September 2006. The 2.56 terabit Falcon Cable System, spanning 4 continents and 11 countries, marks the commercial launch of the 11,589 route km long under-the-sea cable four months before schedule.

The company's cable network is the first and only global network of this scale providing integrated connectivity on one seamless network to the three highest growing regions – India, Middle East and China.

Recently, Reliance Communications launched a joint programme with Intel to offer Internet connectivity on Intel-powered PCs. The programme has been initiated in Andhra Pradesh and will be extended to the rest of the country during the next few months. Users purchasing systems from genuine Intel dealers will be offered internet connectivity on the Reliance Netconnect platform.

The project will intially cover 13 towns in Andhra Pradesh, and will then be extended to other states. The intent of this programme is to increase Internet and PC penetration in small towns, where lack of connectivity is a bottleneck to development.

Reliance Communication also plans to launch rural PCOs, which will function as Internet kiosks in the near future.

In June 2006, the company approved an issue of ADRs/GDRs up to $1 billion. The company's extra-ordinary general meeting (EGM) approved the sponsored Global Depository Receipts (GDRs)/American Depository Receipts (ADRs) programme for a maximum of $1 billion, including a green-shoe option of 20% of the offer size.

Reliance Communication had registered a net profit growth of 27%, to Rs 512.70 crore (Rs 403 crore) for Q1 June 2006. Net sales rose 9%, to Rs 3,250.10 crore (Rs 2,970 crore).

Src: Capitalmarket