Tata Communications’ (TCOM) marked turnaround has been led by focus on operational efficiency, a transient pricing uptick in voice business and the rupee  weakness. We concede that core business growth and margins could moderate as benefits of rupee and pricing reverse in the near term.

However, strong cash flow generation and non-core asset sales (Neotel stake sale, demerger of land bank and monetization of additional properties) would improve balance sheet health. Despite the recent outperformance (31% return in 2013), we believe valuations are inexpensive.

TCOM owns the world’s largest submarine cable network and has ~19% share in global wholesale voice business. It is the biggest player in data center/ collocation and ATM management businesses in India with 1m+ sq. ft of storage space and 17,000+ ATMs under management.

With peak capex in core business behind and profitability improving, we estimate free cash generation of US$500m over FY14-16 for TCOM.

After turnaround of the core business, we believe focus would shift to balance sheet deleveraging through sale of non-core assets. This includes – i) stake sale in Neotel, and ii) sale of select residential properties across the country.

Demerger of a 740 acre land parcel is another key trigger for minority shareholders of TCOM.

There are around 296 stocks in the BSE that surged over 100 per cent during the period. Out of 296, 14 stocks turned multibagger and gave return of over 500 per cent during the year.

Domestic equity markets so far have remained under pressure in the ongoing calendar year 2015 on the back of various factors such as falling commodity prices, China yuan devaluation, outflow of foreign money and concerns over the passage of key bills like the Goods and Service Tax and Land Bill. This year, the BSE Sensex slid 7.20 per cent to 25,519.22 till December 18.

There were around 296 stocks in the BSE that surged over 100 per cent during the period and defied the downward movement of the benchmark indices. Out of 296, 14 stocks turned multibagger and gave return of over 500 per cent during the year.

According to market experts, stocks that multiply manifolds in two to five years horizon giving far superior returns than the general markets are called multibagger stocks.

Below is a list of top stocks that jumped over 500 per cent this year.

Mangalam Drugs & Organics: The share price of the company jumped 1,363 per cent in 2015 till December 18. The scrip jumped from Rs 20.05 on December 31 last year to Rs 293.30 on December 18 this year. The company is having a market capitalisation of Rs 421 crore (as on December 18) and it is engaged in the manufacturing of chemicals, such as active pharma ingredients (API) perfumery, disperse dye intermediates, bulk drugs and bulk drugs intermediates. The Company’s segments include bulk drugs, and chemicals and others.

Uniply Industries: The company is engaged in manufacturing of plywood and other panel products. The share price of Rs 314 crore market cap company surged 1,051 per cent this year. It was trading at Rs 157.40 on December 18. For the quarter ended the company posted net profit of Rs 0.94 crore, up 162.82 per cent, against net loss of Rs 1.50 crore in the corresponding quarter a year ago.

Himachal Fibres: The Rs 519 crore market cap company manufactures and sell cotton and blended yarns in India and internationally. The share price of Himachal Fibres climbed 968 per cent during the period. It jumped from Rs 5.64 on December 31 last year to Rs 60.20 on December 18 this year.

Cupid Ltd: Cupid is a leading manufacturer of quality male condoms. The share price of Rs 503 crore market capitalisation company advanced 947 per cent this year till December 18. For the quarter ended September 205, net profit of Cupid jumped 138.42 per cent to Rs 4.11 crore from Rs 1.72 crore in the corresponding period last year.

Keerthi Industries: Share price of Keerthi Industries surged 866 per cent to Rs 230.80 on December 18 from Rs 23.90 on December 31 last year. Keerthi Industries was incorporated in 1982. It operates in four segments: cement division, wind mill, electronics division and sugar division. For the financial year ended March 2015, the company posted net profit of Rs 18.87 crore, up 204.54 per cent against net loss of Rs 18.05 crore last year. The company posted net loss of Rs 24.55 crore in FY 13 and net profit of Rs 11.94 crore in FY12.

Pioneer Distilleries: The company’s main objective is to manufacture Extra Neutral Alcohol (ENA), Rectified Spirits (RS) and Special Denatured Spirit (SDS). This year, the share price of Pioneer Distilleries surged 767 per cent to Rs 283.50 till December 18. For the quarter ended September 2015, the company posted net profit of Rs 2.24 crore, up 161.47 per cent, against net loss of Rs 3.64 crore in the corresponding quarter a year ago.

Cambridge Technology Enterprises: The company is a global technology services and outsourcing company. The share price of Rs 251 crore market cap company advanced 720 per cent to Rs 127.85 on December 18 from Rs 15.59 crore on December 31 last year.

GM Breweries: The company is engaged in the manufacturing of alcoholic liquor and markets its products brandy, rum and whiskey under brand names Pioneer Doctor Brandy, Pioneer Special Doctor Brandy, Hot Shot Rum and Reporter Choice Whiskey. The company has imported oakwood barrels to mature the whiskey in order to impart the liquor with the correct character, colour, strength and distinctive taste. The share price of GM Breweries gained 642 per cent this year till December 18. For the quarter ended September 2015, the company registered net profit of Rs 9.43 crore, up 304.72 per cent, against Rs 2.33 crore in the corresponding quarter a year ago.

Intrasoft Technologies: The Rs 602 crore market cap company is engaged in the business of providing electronic greeting cards, development of associated digital content and online marketing. The company provides electronic greeting cards through their websites and has partnered with several service providers for their technological infrastructure required to facilitate the same. They own and operate 123greetings.com, which is the most visited electronic greetings website. Intrasoft Technologies was incorporated on February 27, 1996 as Regency Extrusions & Plastics Pvt Ltd. The share price of Intrasoft Technologies surged 592 per cent to Rs 409.10 on December 18 from Rs 59.10 on December 31 last year. For the quarter ended September 2015, the compay posted a consolidated net profit of Rs 1.66 crore, up 80.09 per cent, against Rs 0.92 crore in the same quarter a year ago.

Kesar Petroproducts: Share price of Kesar Petroproducts climbed 587 per cent in the ongoing calendar year till December 18. Kesar Petroproducts was acquired under the change of management scheme formulated by the BIFR. Sharma Group having F industrial units at Lote Parshuram took over the management of the Company they have infused new capital in the Company and have started the manufacturing of various chemicals Cuprous Chloride, phthalimide and sulphates being the major products. For the quarter ended September 2015, the company posted net profit of Rs 2.87 crore, up 51.11 per cent, against Rs 1.90 crore in the corresponding quarter a year ago.

The four other stocks that jumped over 500 per cent in the ongoing calendar year are Alpa Laboratories (up 554 per cent), Archana Software (up 544 per cent), Brawn Biotech (up 528 per cent) and Dynacons Technologies (up 514 per cent).

IndiGo shares fell as much as 5.50 per cent on Monday after the low-cost carrier on Saturday said there is no clear visibility about the delivery of A320 neos (Reuters)

IndiGo shares fell as much as 5.50 per cent on Monday after the low-cost carrier on Saturday said there is no clear visibility about the delivery of A320 neos as delivery of the first aircraft has been delayed by Airbus due to “industrial reasons”. Earlier, the first A320 neo was to be delivered to IndiGo on December 30.

At 1.45 pm, the share price of IndiGo was trading nearly 5 per cent down at Rs 1,086.75. The scrip opened at Rs 1,140 and had touched a high and low of Rs 1,157.75 and Rs 1,080, respectively, in trade so far.  Later, the scrip settled 5.56 per cent down at Rs 1079.25.

In a BSE filing, the company said, “At this time IndiGo does not have clear visibility of its future A320 neo delivery schedule and the potential for additional delays exists. We are looking at mitigating the potential shortfall in capacity through other options.”

As per the original plan, IndiGo was to induct 10 A320 neos in the current fiscal ending March 31, 2016. IndiGo had announced to acquire 180 A320s, including 150 A320 neos in 2011, the largest aircraft order by any Indian carrier at that time.

European aircraft maker Airbus claims that this new type of aircraft burns 10-15 per cent less fuel than the existing versions.

Currently, IndiGo has a fleet of 98 aircraft, and about 75 of them are on an operating lease — a business model which has helped it lower costs.

(With inputs from PTI)

IVRCL share price soared as much as 11 per cent in the early trade on Monday after the debt-laden infrastructure firm decided to split its Engineering Procurement Construction (EPC) and assets business (Photo: Reuters)

IVRCL share price soared as much as 11 per cent in the early trade on Monday after the debt-laden infrastructure firm decided to split its engineering procurement construction (EPC) and assets business – land and Build Operate Transfer (BOT) – to float two separate companies.

In a BSE filing, the company said the board has decided to convene a shareholders’ meeting to approve the conversion of part of the debt into equity shares of the company pursuant to invocation of strategic debt restructuring by joint lenders forum.

At 10.04 am, the share price of IVRCL was trading 5.44 per cent up at Rs 9.69. The scrip opened at Rs 9.50 and had touched a high and low of Rs 10.20 and Rs 9.50, respectively, in trade so far. Sensex was up 62.37 points at 25,581.59.

“To carve out the business of the company into ‘EPC Company’ and ‘Assets Company’ which includes Land/BOT and other assets, by way of Scheme of Arrangement subject to receipt of “No objection letter” (NOC) from the lenders/Joint Lenders Forum, approval of High Court of Andhra Pradesh and Telangana and any other approvals as may be required,” IVRCL said in a filing.

The company felt that the spinning off of EPC business would enable investment by potential equity investors.

On December 1, the company said the Joint Lenders Forum (JLF) held on November 26, 2015, the lenders invoked Strategic Debt Restructuring (SDR) in the company.

Last year, it recast its Rs 7,300 crore debt under CDR package. Strategic debt conversion option will give lenders the right to convert their outstanding loans into a majority equity stake if the borrower fails to meet conditions stipulated under the restructuring package and take control of the company operations.

In the past one year, the share price of IVRCL fell 39.74 per cent to Rs 9.15 on December 18. Sensex fell 5.93 per cent during the same period.

For the quarter ended September 2015, IVRCL posted net loss of Rs 305.46 crore, down 62.86 per cent, against net loss of Rs 187.56 crore in the corresponding quarter a year ago.

(With inputs from PTI)