The Hindu Business Line : Jindal Photo sees large volumes

THE Jindal Photo stock today witnessed substantial rise in volumes on major bourses reportedly on value buying by a set of investors. The traded quantity on the NSE in the counter shot up to 2.29 lakh shares from 78,771 shares recorded yesterday. On the BSE, the volumes were 91,917 shares, up from 27,979 shares traded on Monday. From February 6 closing of Rs 46.55, the stock has put on a gain of Rs 9. It closed today at Rs 55.50, after touching an intra-day high at Rs 56.70.

On the NSE, there were three bulk deals involving 51,807 shares. Of the traded quantity on the NSE, 32.2 per cent was presented for delivery.

According to Mr Ketan Thacker of Anagram Stockbroking, at today's closing, the stock traded at just 5.4 times its trailing 12 months earning per share of Rs 10.20. Its book value is Rs 84 and has reserves worth Rs 317 crore. The company has paid 10 per cent to 12 per cent dividend for the last eight years. "Considering the financials, the stock appears undervalued," Mr Thacker said.

Jindal Photo, which is the country's largest producer of colour roll films, photographic paper, medical & industrial films, cine colour positives and photographic chemicals, has a technical and marketing tie-up with Fuji Films of Japan.

The company has undertaken marketing initiatives to shore up its turnover by 13 per cent against the industry's average sales growth rate of 10 per cent. Apart from restructuring the distribution network, it has entered into brand endorsement arrangements with six professional photographers. For the amateur segment it has set aside a budget of Rs 20 crore for promotion. The company has already set up 110 digital mini labs across the country and plans to raise the figure to 200. The company is one of the five contenders for 74 per cent stake in Hindustan Photo Films.

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