Stock to watch--Visaka Industries Ltd

Visaka Industries shoots, on stunning Q1 show: Visaka Industries rose 1.45%, to Rs 105.10 on brilliant Q1 June 2006 results. A total of 36,334 shares were traded on the BSE. The stock is on recovery path after getting battered in the recent market meltdown. The stock, after finding support level at Rs 73.65 on 8 June, had rallied to close at Rs 103.60 on 13 July 2006 as the market recovered from a bearish phase. Visaka Industries has registered a net profit jump of 135%, to Rs 9.19 crore in Q1 June 2006 compared with Rs 3.90 crore in Q1 June 2005. Net sales during the same period under consideration increased to Rs 115.58 crore from Rs 77.92 crore. In mid May, the board had recommended a 2.29:1 ratio as the share exchange ratio for the amalgamation of the company with Shakti Roofing. Thus, for every 2.29 equity shares of Shakti Roofing of Rs 10 each, one equity share of Visaka Industries of Rs 10 each would be given. Visaka Industries had decided in April to go in for a placement of 3 lakh equity shares and 9 lakh convertible warrants of the company to private investors to raise Rs 4.5 crore for funding its ongoing expansion plans, which includes setting up a new cement asbestos units. Visaka Industries is a cement products and textiles maker. The company has been benefiting from a growth in demand from the rural housing segment. Asbestos cement is mainly used for roofing. In the textiles segment, Visaka has been a focused synthetic blended yarn player, supplying to customers in the UK, France, Germany, Spain, Italy and Turkey. The company is now foraying into cotton spinning, garmenting, and weaving, in a bid to become a fully integrated textile player in the post-quota regime. The company has charted out an ambitious Rs 210-crore expansion plan encompassing the cotton spinning, weaving (fabrics) and garmenting segments. [With inputs from the Internet] Best wishes, Suman Mukherjee India.