Lloyds Slips

Close on 13/6/97: Rs 18.75

Close on 6/6/97: Rs 23

This scrip fell by 18.48 per cent. Trading sentiments in this scrip worsened as the company faces a liability of Rs 75 crore on the conversion of its optionally fully convertible debentures (OFCD) issued in February 1996. As per the terms of the issue of these OFCD, the conversion of part-B will be at 50 per cent of the average market price on the Bombay Stock Exchange for the previous six months to the conversion. And if the conversion price falls below the face value of OFCDs, then the surplus amount will refunded. There was also the news that C R Bhansali has held Lloyds Finance responsible for the withdrawal of the approval given to his group companies for setting up the CRB Global Bank. However, Lloyds Finance refuted the charges.

 

Hindustan Petroleum

Close on 13/6/97: Rs 457.75

Close on 6/6/97: Rs 429.50

This scrip registered a 6.6 per cent gain over the previous week's close. This was mainly due to the good results announced by the company. It recorded a 22 per cent rise in sales to Rs 18,089 crore in 1996-97 from Rs 14,862 crore in the previous year. Net profit rose 19 per cent to Rs 612.22 crore over 1995-96. The EPS was Rs 29.31. Rumours of petroleum products hike was another factor which fuelled the bullish rally this stock.

Pond's

Close on 13/6/97: Rs 1649

Close on 6/6/97: Rs 1406

This scrip registered a 17.28 per cent gain. This was because of the news that Hindustan Lever (HLL) and Pond's India have worked out a compromise deal with the Reserve Bank of India (RBI) on the pricing of their 1993 preferential issue. HLL has agreed to the price of Rs 357 per share for the preferential allotment of 29.84 lakh shares to Unilever. This allotment will enable the Unilever group to take its stake back to 51 per cent after HLL's merger with Tomco.

Also, rumors of bonus issue in the ratio of 1:1 also added to the bullish sentiments in this scrip.

Leading Edge Systems

Close on 13/6/97: Rs 132.75

Close on 6/6/97: Rs 106.50

This scrip gained 24.6 per cent over its last week's closing price. The main reason for this is the excellent results that the company has posted for 1996-97. The market has been upbeat about software stocks forthe last six months and Leading Edge has gained around 300 per cent of its December price.

The company has posted revenues of Rs 33.5 crore for 1996-97 against Rs 16.5 crore in the previous year. Though other income increased significantly from Rs 0.45 crore to Rs 1.06 crore, its contribution to the gross profit was not too significant.

Like most other software companies, Leading Edge too has a vey low debt component and interest costs were negligible. The gross profit increased to Rs 8.89 crore against previous year's Rs 3.17 crore. Net profit stood at Rs 6.1 crore against Rs 2.33 crore in 1995-96. According to the projections the company was to have posted an EPS of Rs 16.39 but it bettered it at Rs 18.54.