The Hindu Business Line : Upgrade makes HLL attractive

On the BSE, the stock price was up 3.08 per cent at Rs 110.35 with volume of 12.63 lakh shares. On the NSE, it closed at Rs 110.45, up 3.27 per cent with volume of 41.62 lakh shares.

Dealers said the buying interest in the counter came after a leading US-based broking firm upgraded the stock from `equal weight' to `overweight'. The rationale for the upgrade is that the worst for the company is over and further fall from this level is minimum.

Moreover, the firm believes that the company's home and personal care products consumption to increase in the next few years as the per capita consumption of these products is lowest among the emerging markets.

De-merger may lift valuation

EVEREADY Industries' stock price gained sharply on Monday when there was overall selling in the market. Dealers said the buying interest in the stock was seen due to the de-merger of the company's tea and battery business likely to happen soon. The company has already announced to de-merge these businesses.

Talk is that after the de-merger the valuation of the company is expected to improve. Another reason for the interest in the stock is due to the uptrend in tea prices and this is likely to benefit the company.

The stock price of Eveready Industries was up 11.20 per cent at Rs 40.70 on the BSE with volume of 4.96 lakh shares. On the NSE, it closed at Rs 40.75, up 11.95 per cent with volume of 9.21 lakh shares.

Gains on merger talk

OFFICE automation company Ricoh India gained on Monday. The rise was on possibility of merger of the company with another office automation company Gestetner India. Talk is that this announcement will be made soon.

Dealers said the merger will help both the companies as they compete for the same business. However, the exchange ratio of the merger was not known.

Ricoh India stock gained 12.79 per cent at Rs 12.35 with volume of 15,350 shares and Gestetner stock gained 10 per cent at Rs 49.50 with volume of 2,175 shares.

Virendra Verma

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