Financial Daily from THE HINDU group of publications
Sunday, Apr 03, 2005
Financial Daily from THE HINDU group of publications Sunday, Apr 03, 2005 |
|
|
|
|
|
Investment World
-
Fixed Deposits Corporate - Fixed Deposits FD options
The higher rate compared to that offered by public sector banks is attractive, considering the risk profile. The Government of India holds a 47 per cent stake in the bank and the State governments of Tamil Nadu, Andhra Pradesh, Kerala and Karnataka the rest. The bank is registered as a co-operative society and is governed by the Ministry of Home Affairs. It turned in a profit of Rs 3.84 crore for the period ended March 2003.
Escorts: An investment in the fixed deposit programme of Escorts can be considered for a one- or two-year lock-in option. Depositors can avoid longer tenures due to the potential risks involved in dealing with a company that is just poised to turnaround and post a profit after recording a massive net loss during the previous year. The company offers an attractive 8.5 per cent rate of interest for a one-year deposit. Escorts is primarily engaged in the business of manufacturing tractors and farm equipment. The company, the fourth largest player, has been tracking the fortunes of the tractor industry. So while its performance plummeted in 2003-04 (July to June), when industry-wide sales of tractors crashed, it has been making a quite comeback this year. Labour problems, which had also affected its performance in the previous year, have not been a point of contention this year. JK Industries: Investors may consider parking their funds in the fixed deposit scheme, with a one-year tenure, offered by J. K. Industries. The deposit with a one-year maturity period carries a healthy interest rate of 8 per cent. The company is fundamentally sound with a strong presence in the automotive tyre industry. It has a presence in the fast growing radial tyre segment as well. The merger of Vikrant Tyres has resulted in the addition of truck radials into the product portfolio. Despite the inherent strengths, the company's performance in the recent quarters has not been impressive owing to unfavourable business environment. Along with other tyre producers, the company's profitability has been under pressure. This trend is likely to persist in the near term as well. Given this scenario, it would advisable to lock-in to the deposits with a one-year maturity. Jindal Stainless: Investments in the fixed deposit scheme of Jindal Stainless can be considered with a one-year perspective. Long-term tenures can, however, be avoided, as the incremental returns of 25-50 basis points are not attractive. Jindal Stainless manufactures stainless steel and other special steel products such as steel ingots, strips and ferro chrome. Demand for stainless steel from China is likely to remain strong over the next one or two years. The company should be able to maintain its margins of more than 15 per cent and is well-placed to meet its current interest obligations.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|