The Hindu Business Line : ICI (India) firm on fund buying

ICI (India) has been accumulated by a leading foreign broking firm in the last few days. However, the accumulation is on a very smaller level at the moment.

Dealers said this firm is bullish on the stock as it is the fastest-growing paint company in the last four quarters.

It also has strong growth in flavours and adhesives business and accelerated new product introductions.

The overall restructuring undertaken by the company in the last few years has resulted in company having cash of over Rs 400 crore. The market expectations are that the ICI management can use this cash for buy-back of shares, higher dividend or acquisition.

If either of these events happens, there could be re-rating of the stocks.

However, the current accumulation of the shares is being done primarily for growth in its core business - paint.

On Monday, the stock price of the company gained 2.32 per cent at Rs 176.40 on BSE with volume of 16,756 sharesl; on the NSE, the stock closed at Rs 175.45, up 0.98 per cent, with volumes of 55,917 shares.

Active interest seen

AFTER remaining inactive for some time, Bongaigaon Refinery shot into the limelight on Monday.

Dealers said the interest in the stock was from select market players.

The talk is that the refinery margins of the company would not be affected due to the rise in international oil prices.

Moreover, the stock has not moved in line with other refinery companies in the last few weeks. This was seen on Monday when other refinery companies stocks remained flat.

Bongaigaon Refinery gained 5.65 per cent on the BSE at Rs 73.80 with volumes of 8.44 lakh shares; on the NSE, the stock closed at Rs 73.80, up 5.50 per cent, with volumes of 20.37 lakh shares.

Tourism booster

WITH the outlook for tourism and hospitality sector looking bright, the stock of International Travel House, a company into travel related business, has attracted market interest.

Dealers said several investors, who are bullish on hotel stocks, have now started buying the shares of the company.

Their logic for buying is that if hotels are doing good business, International Travel House has to do well as other logistic supports such as car rental and air ticket booking are being done by the company.

On Monday, the stock price of the company gained 7.92 per cent at Rs 70.15 on BSE with volumes of 57,361 shares.

Virendra Verma

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