May 2, 2007

Moser Baer to issue 1:2 bonus, raise $150mn

The board of directors of Moser Baer India today announced an issue of bonus shares in the ratio of 1:2 (one share for every two shares held) by capitalising a part of its reserves.

The company also approved raising of capital to finance the company's expansion/special projects through a mix of debt/equity and convertible instruments up to $150 million (around Rs 630 crore).

Company/Stock Outllook :

The Company has shown good performace from past few quarters and has been a superb turn around story as compared to last year.The stock price has moved smartly from 200 + levels to 350 + in few months time.The Stock is all set to cross its 52 high in coming weeks with backing from its Superb Q4 number.

Company Results :

Moser Baer Q4 net up 100%

Optical storage device maker Moser Baer backed by strong demand and operational efficiencies has posted a net profit of Rs 39.72 crore for the fourth quarter ended March 31, 2007 (Q4FY07), representing a 100% jump from the corresponding period of the last fiscal.Revenue in Q4FY07 stood at Rs 550 crore registering an increase of 3.8% over the fourth quarter last year, and 5.1% on a sequential basis.

According to the company, the year was a landmark one for Moser Baer as it saw the optical media business emerging as a free cash business, helped by robust shipments, improving asset turnovers and production efficiencies in the business. The company was also helped by stabilisation of polycarbonate prices, a key ingredient in churning out DVDs.

During the quarter, the company established a wholly-owned subsidiary -- Moser Baer Investments and through this company acquired 100% stake in Photovoltaic Holdings Plc and Moser Baer Solar Plc located in Isle of Man. It also acquired 81% stake in a Dutch Company – O M & T B V through one of its Cypriot subsidiaries.

THIS STOCK IS GOOD INVESTMENT BET FOR LONG TERM INVESTOR WITH A FAIR TARGET OF 475 + (6 to 8 Months Hold ).

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