The Hindu Business Line : HFCL stock spurts on MTNL order

THE HFCL stock made an 8 per cent upward move with volumes spurting apparently after a confirmation of an Rs 250-crore order from MTNL for the company.

The 2001-scam tainted stock had a volume of 60.24 lakh shares (45.8 per cent of it was presented for delivery) and 143 block trades accounted for 38.38 lakh shares.

On the BSE, 53 block deals caused 10.63 lakh shares change hands. At Tuesday's NSE closing of Rs 14.15, the stock traded at around 15 times its trailing 4-quarter earnings per share.

The shareholding pattern suggests that non-promoters hold much of the floating stock. The promoters' holding in the company has come down to 3.15 per cent on December 31, 2003 from 20.22 per cent on March 31, 2002.

According to Mr Mathew Easow of matheweasow.com, the stock is known to be operator-driven. The market regulator had once raised its fingers at the promoters, but nothing has been proved so far. "Many a small investors are still holding on to the stock even though it is regarded as a speculative and high-risk counter," he commented. The stock, which had reached around Rs 1,600, had seen its peak at Rs 35 and trough at Rs 11, in one year.

The public holding on December 31, 2003 was at 41.12 per cent, marginally down from 43.77 on March 31, 2002, while the total institutional holding, though changed hands frequently, was up at 20.53 per cent from 12.03 per cent on March 31, 2002.

ICICI Bank was the single largest holder (11.53 per cent) till December 31, 2003, followed by Long Term India Invest Fund Ltd - 2.61 , UBS AG (A/C of Long term India Investment Fund) - 1.6 , Morgan Stanley Dean Witter Mauritius Co - 1.36 , Creative Garments Ltd -1.86 and Lata Devi Bajoria (wife of jute baron Arun Bajoria) - 1.06 .

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