A host of telecom stocks enjoyed a pride of place among gainers and a few among these even hit their 20% barriers today.

Aksh Optifibre (Rs 24), Vindhya Telelink (Rs 27.90) and Birla Ericsson (Rs 15.60) were locked at their respective 20% upper limits. Among other major gainers were Tamil Nadu Telecommunications (up 14.7% to Rs 13.20), Surana Telecom (up 10.8% to Rs 15.50), Sterlite Optical Technologies  (SOTL) (up 9.7% to Rs 46.10) and Finolex Cables (up 6.3% to Rs 100). Good volumes were registered in stocks like SOTL (3.3 lakh shares) and Finolex Cables (96,295 shares).

Some like SOTL, Vindhya Telelinks and  Aksh, have already witnessed recovery on the bourses in the last few weeks on the back of a broad based rally in Old Economy stocks.

Market sources attribute the surge in telecom cable stocks to expectations of new orders. Jelly-filled  telecom cables (JFTC) tenders are under flotation by BSNL and MTNL  for current year's supply. However, orders from MTNL and BSNL are expected to remain at the low levels as has been the case last year. Last year, BSNL had reduced its procurement of jelly-filled telephone cables by 63%.

Moreover, the prices of JFTC, optical fibre (OF) and optical fibre cables (OFC) are ruling low. The low prices along with low offtake from BSNL affected the performance of most cable makers last year. Further, OF and OFC makers were hit by a fall in exports and poor international prices of OF and OFC. Finolex Cables has said that its performance in FY 2004 would be better than that of FY 2003.

The  poor  off-take  from  state-owned  telecom  companies coupled with low prices  hit  the  company's  financial performance of Finolex Cables in FY 2002-03. Its net profit plunged 62.5% to Rs 24.72 crore in FY 2003 from Rs 65.95 crore. Net sales fell  24% in FY 2002-03 to Rs 497.78 crore from Rs 658.98 crore.

On the other hand, global depression in the OF and OFC hit SOTL. The company ended a disastrous FY 2002-03 with an 83% fall  in  consolidated sales to Rs 158.8 crore. So, even though the company reduced its costs, it incurred a loss  of  Rs 30.91 crore at the operating level as against operating profit (OP) of Rs 211.05 crore in the corresponding previous period.

A host of telecom stocks enjoyed a pride of place among gainers and a few among these even hit their 20% barriers today. Aksh Optifibre (Rs 24), Vindhya Telelink (Rs 27.90) and Birla Ericsson (Rs 15.60) were locked at their respective 20% upper limits.

Among other major gainers were Tamil Nadu Telecommunications (up 14.7% to Rs 13.20), Surana Telecom (up 10.8% to Rs 15.50), Sterlite Optical Technologies (SOTL) (up 9.7% to Rs 46.10) and Finolex Cables (up 6.3% to Rs 100). Good volumes were registered in stocks like SOTL (3.3 lakh shares) and Finolex Cables (96,295 shares).

Some like SOTL, Vindhya Telelinks and Aksh, have already witnessed recovery on the bourses in the last few weeks on the back of a broad based rally in Old Economy stocks.

Market sources attribute the surge in telecom cable stocks to expectations of new orders. Jelly-filled telecom cables (JFTC) tenders are under flotation by BSNL and MTNL for current year's supply. However, orders from MTNL and BSNL are expected to remain at the low levels as has been the case last year. Last year, BSNL had reduced its procurement of jelly-filled telephone cables by 63%.

Moreover, the prices of JFTC, optical fibre (OF) and optical fibre cables (OFC) are ruling low. The low prices along with low offtake from BSNL affected the performance of most cable makers last year. Further, OF and OFC makers were hit by a fall in exports and poor international prices of OF and OFC. Finolex Cables has said that its performance in FY 2004 would be better than that of FY 2003.

The poor off-take from state-owned telecom companies coupled with low prices hit the company's financial performance of Finolex Cables in FY 2002-03. Its net profit plunged 62.5% to Rs 24.72 crore in FY 2003 from Rs 65.95 crore. Net sales fell 24% in FY 2002-03 to Rs 497.78 crore from Rs 658.98 crore.

On the other hand, global depression in the OF and OFC hit SOTL. The company ended a disastrous FY 2002-03 with an 83% fall in consolidated sales to Rs 158.8 crore. So, even though the company reduced its costs, it incurred a loss of Rs 30.91 crore at the operating level as against operating profit (OP) of Rs 211.05 crore in the corresponding previous period.