216 turnaround firms' m-cap rises 2%

Share prices of 19 firms jumped up more than 50 per cent in two months

As many as 216 companies which turned around in the quarter ended March 31, 2004, have reported a two per cent rise in their market capitalisation in the last two months. The Bombay Stock Exchange (BSE) Sensex has reported a 9.52 per cent drop during this period (April 1 to May 28).

Of the 118 actively traded scrips from this basket, 19 have reported more than a 50 per cent rise in their share prices during this period. Another 25 firms' share prices appreciated in the range of 20-50 per cent, while 24 firms reported a 5-20 per cent rise in prices.

The 216 firms had posted an aggregate net profit of Rs 1,101.94 crore during the quarter ended March 2004 as against a net loss of Rs 1,065.45 crore in the same quarter of the previous year.

The turnaround was on the back of a 53 per cent rise in sales and a 164 per cent jump in other income. These firms also saw a 33 per cent drop in interest cost during the quarter.

Of the 216 companies, 24 are non-banking financial institutions, 19 from the information technology sector, 12 pharmaceutical firms, five from the fertiliser sector, four each from cement, entertainment and power sectors.

Mangalam Cement was the largest gainer which has risen 112 per cent from Rs 14.58 on March 31, 2004, to Rs 30.95 on May 28, after the company posted a net profit of Rs 3.42 crore against a net loss of Rs 11.71 crore in the previous year's corresponding quarter.

The share prices of Jagsonpal Pharmaceuticals and Elpro International almost doubled in the last two months after reporting a turnaround during the quarter.

Jagsonpal Pharmaceuticals reported a net profit of Rs 2.32 crore against a net loss of Rs 1.02 crore, while the stock has appreciated by 100 per cent from Rs 107 to Rs 213.70 after the announcement of its results.

Elpro International's share price jumped by 88 per cent from Rs 19.20 to Rs 36, while the company has posted a net profit of Rs 5.92 crore during the March 2004 quarter against a net loss of Rs 2.85 crore in previous year's corresponding quarter.

The share price of JK Corp has appreciated by 38 per cent after the company reported a net profit of Rs 27.73 crore against a net loss of Rs 16.57 crore. The stock has risen from Rs 10.25 on March 31 to Rs 14.10 May 28.

The share price of sugar stock Kesar Enterprises increased by 37 per cent from Rs 17.25 to Rs 23.60. The company has posted a net profit of Rs 3.90 crore (a net loss of Rs 69 lakh).