The Hindu Business Line : Walks well on retailing hopes

WITH the stock of shoe company Mirza Tanners having caught institutional investors interest, counter of Liberty Shoes is also being accumulated by a section of the market.

Dealers said Liberty Shoes has a wider reach in India and also has large retail outlets. Several of its brands such as Floaters and Gliders are well known among the customers.

The talk is that the company is setting up a subsidiary in retailing business, which would further unlock value. Several market players in the last few days have bought the shares of the company.

On Monday, the stock gained 9.68 per cent at Rs 142.15 on the BSE with volumes of 18,567 shares; on the NSE, it closed at Rs 142.60, up 10.03 per cent, with volumes of 48,169 shares.

Active interest seen

THE Rama Newsprint stock on Monday saw hectic activity. It closed 9.18 per cent higher at Rs 12.25 on the BSE with volumes of 16 lakh shares. On the NSE, it closed at Rs 12.25, up 8.41 per cent, with volumes of 18.23 lakh shares.

Dealers said the interest in the stock is seen from select market players.

The talk is that the debt restructuring, which is underway for the company, is almost done. With the restructuring, the interest outgo will come down drastically.

The talk is that the company is also planning to further reduce its debt by replacing the high cost debt (after the restructuring) with lower one.

If the market talks are to be believed all these are being finalised and the company is just awaiting financial institutions' nod.

Another factor for the interest in the stock is good third quarter results the company would show. In the second quarter, the company's performance was affected as for almost two months, its plant was closed due to rains.

Dealers said now the company's plant is operating at more than 100 per cent.

Sharp gains

THE stock of KLG Systel has been on the rise in the last couple of trading sessions. In the last two sessions, the stock has gained 40 per cent.

Dealers said the stock has caught investors' interest as some of the software developed by the company has got good response from its clients. The company caters to engineering and power sector companies for IT solutions.

The talk is that the company has now good clients base and has been constantly receiving orders.

On Monday, the stock closed at Rs 98.60, up 20 per cent, at Rs 97.85 with volumes of 2.65 lakh shares; on the NSE, it closed at Rs 98.60, up 20 per cent, with volumes of 8.5 lakh shares.

Virendra Verma

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