The Hindu Business Line : Moser-Bear: Boosted by FII buying

On Monday, the stock touched new high of Rs 584. The main factor for increased interest, even at these levels is that several small and medium size companies in the CDs market have closed down and this has resulted in consolidation in the industry and rise in prices.

Earlier, a glut in production capacity had led to a sharp fall in prices of CDs, which drove many small and uncompetitive manufacturers out of business, except five players and Moser-Baer was among them.

At that time, the stock price of Moser-Bear had fallen and several institutional investors exited the stocks. Now five players control 80 per cent of the industry's installed capacity and this has brought back the interest of various market players into these stocks.

Talk is that several FIIs have started buying the share over the last few days, as the price-earning ratio of Moser-Baer is the lowest among the top five. The next cheapest stock trades at twice as much as Moser-Baer.

On Monday, the stock gained 4.53 per cent at Rs 580.50 on the BSE with a volume of 1.36 lakh shares and on the NSE it closed at Rs 578.20, up 4.32 per cent with volume of 3.73 lakh shares.

Gamon India: Gains on good order position

Construction company Gammon India's stock is attracting several large investors.

The main factor for the interest is its order-book of around Rs 2,900 crore, with projects across the gamut of infrastructure sectors.

Dealers said this diversity protects the company from over-exposure to any one sector, thus ensuring stability in margins. The company's entry into the infrastructure development business through its fully-owned subsidiary, Gammon Infrastructure Projects Ltd, is considered core competence in construction. The subsidiary has four `build-own-transfer' projects so far at advanced stage of completion. These combined projects are being valued around Rs 139 per share of Gammon India. Taking these factors, a leading domestic broking firm is advising its clients to buy the share of Gammon. On Monday, the stock gained 5 per cent at Rs 319.40 on BSE with volume of 6,378 shares and on NSE it closed at Rs 319.75, up 5 per cent with volume of 9,776 shares.

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