Leading Edge A Cut Above The Rest

Previous weeks close: Rs 30

The Mangalam Cements scrip took a heavy beating, falling by 18 per cent over the previous weeks close. The market hammered the scrip down as it posted poor results for the half year ended September 1996. The company saw its net profit dip by 63 per cent for the first half of 1995-96 at Rs 2.47 crore against Rs 6.60 crore last year.

Its income from operations increased by 14 per cent to 125.79 crore against Rs 110.54 crore last year. The rise in expenditure by

22 per cent to 104.98 crore against Rs 86.25 crore last year affected the bottom line. Another influencing factor was the lower other income

 

at Rs 0.78 crore against Rs 1.97 crore last year.

Tata Tea

Last weeks close: Rs 202

Previous weeks close: Rs 222

The Tata Tea scrip fell by 9 per cent over the previous week despite posting relatively good results for the half year ended September 1996. Market sources attribute the price fall to the announcement by the companys statement that margins on its plantation business are likely to be lower in the second half. Tea prices in the auctions have shown a declining trend from September 1996 due to lower export demand. This trend is likely to continue for the next few months as a result of which the profit margins on plantation operations especially in the South during the second half are likely to be lower.

The overall turnover of the company saw a rise of 40 per cent to Rs 314.67 crore while the net profit went up to Rs 35.30 crore from Rs 28.31 crore last year. It achieved a record export turnover of Rs 105 crore while its core exports saw a rise of 70 per cent over last year.

Leading Edge Systems

Last weeks close: Rs 36

Previous weeks close: Rs 32

This scrip saw a gain of 14 per cent over the previous weks close.

The main reason attributed to the sharp rise is its excellent performance in the first half of 1996-97.

Leading Edge (LESL) recorded a total income of Rs 14.61 crore from Rs 6.48 crore in the previous corresponding period. The company had anyway shown an improved performance in the second half of 1995-96. For the full year, it had a sales of Rs 16.5 crore and a net profit of Rs 2.33 crore.

The company has carved a niche in the market as a developer of financial software and has some excellent products. It has a good presence in both export and domestic market.

For the current half, it had a net profit of Rs 2.47 crore, which is higher than the entire net profit of the previous year. The contribution of other income is insignificant at Rs 0.13 crore. It is also a low-debt company and has an interest burden of only Rs 0.03 crore.

Titan Industries

Last weeks close: Rs 83

Previous weeks close: Rs 107

The Titan Industries scrip saw a decline of 23 per cent over the previous weeks close. There were two reasons; the company declared its results which were bad enough and it has also announced a rights issue in the ratio of one share for every four shares held at a premium of Rs 50 per share.

The company has diversified in jewellery and clocks and is looking at the export market seriously but it is yet to gain a foot-hold there.

Net profit, at Rs 6.34 crore, actually dipped 11.94 per cent, though turnover at Rs 171.69 crore, witnessed a 22.50 per cent increase compared with the figure for the previous year. The good thing is that stringent expenditure control has helped Titan Industries increase its operating margins from the levels of 18.70 per cent to 24.10 per cent.