The Hindu Business Line : Hikal gains on placement talk

THE counter of agro-chemicals company Hikal Ltd has been gaining constantly. Even on Thursday the stock was locked in the 10 per cent upper circuit and closed at Rs 445.65 on the BSE with volumes of 12,810 shares. On the NSE, the stock closed at Rs 443.75, with volumes of 9,043 shares.

The rise in the stock price is attributed to the company's plans to focus equally on the agro-chemicals and pharma business. Currently agro-chemicals contribute most of the revenues and profits. The talk is that the revenue from pharma business will be around 50 per cent in the next two-three years.

Another factor for the increased interest is that the company is planning to place around 10 per cent of the equity to various institutional investors at a price higher than the ruling market price. This is being done mainly to improve liquidity in the stock.

Dealers said with bonus shares (1:2 ratio) expected to come into the market in the next couple of months and the placement of shares will increase liquidity and attract more investors due to the high growth potential of the company's business over the next few years.

It was being talked that several institutional investors have shown interest in the stock, but due to low liquidity that have not yet bought the shares of Hikal.

SAIL gains on Q2 hopes

RIDING on the rising steel prices, the market players have again started accumulating the stock of Steel Authority of India (SAIL).

Dealers said despite the sharp rise in the stock price of the company's stocks, several institutional investors have again started entering the stock. In the last one month, the stock after touching high of Rs 61 has fallen to low of Rs 32. The increased interest is mainly on expectation of good second quarter financial performance of the company.

After the turnaround of the company in the last fiscal, the stock has been on an upward move. Talk is that the company to report a net profit of around Rs 1,000 crore for the six months period. Dealers said there is possibility of further rise in the steel price next month and this is also attracting market players to the stocks.

On Thursday, the stock gained 9.58 per cent at Rs 36.60 on the BSE with volumes of 3.24 crore shares. On the NSE, the stock closed at Rs 36.75, up 8.89 per cent, with volumes of 9.09 crore shares.

Virendra Verma

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