The Hindu Business Line : Hyderabad Ind jumps on strong Q1 numbers

BUILDING and engineering company, Hyderabad Industries stock has been on an upward movement this week due to the good financial performance of the company in the first quarter of the current fiscal, broker said.

The stock has gained 46 per cent this week from Rs 43. In today's trading, the stock gained 9.96 per cent at Rs 63.50 on the BSE with volumes of 1.19 lakh shares; on the NSE, it closed at Rs 63.45, up 9.59 per cent, with volumes of 1.85 lakh shares. Along with rise in the stock price, trading volumes have also gone up.

Brokers said the sudden spurt in the stock price is due to the turnaround by the company in the first quarter and the results were much better than the market expectations.

"Results are exceptionally better than what market could expect," said a dealer with a domestic broking firm. He said if this kind of performance is maintained, further rise in the stock price is possible.

In the first quarter, the company reported a net profit of Rs 7.12 crore compared with Rs 3.78 crore reported in the corresponding quarter last year. However, for the full year, it had marginal loss of Rs 83 lakh on revenues of Rs 323.82 crore. In the first quarter, its EPS is Rs 9.96.

Brokers said the company's building projects segment is doing extremely well and this trend is likely to be maintained and its heavy engineering division is likely to reduce losses. "There will be double benefit for the company," said a broker.

However, brokers cautioned that the stock has run-up very fast in a short period of time and some profit-taking is expected before the stock starts moving up again.

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