The Hindu Business Line : SRF: Fund `advice' keeps it firm

SRF Ltd, engaged in nylon tyre cord and pharma chemicals, gained sharply on Wednesday at the bourses. The stock price of the company was locked in 20 per cent upper circuit on the BSE and the NSE.

It closed at Rs 81.40 on the BSE with volumes of 21.62 lakh shares and on the NSE, at Rs 81.15 with volumes of 66.72 lakh shares.

Dealers said the sharp rise in the stock came after a leading broking firm recommended a buy on the stock. The firm feels that the company has huge growth prospects in the next few years.

Most of the growth in the current fiscal is expected to come from the nylon tyre cord business. In the last two quarters, the profits of the company suffered due to dumping of nylon tyre cord by China. But the Government has imposed anti-dumping duty now, and the positive impact of this would be seen in the coming quarters.

SRF has ventured into pharmaceuticals chemicals business, which is expected to show huge growth in the next two years.

ITC in limelight on retail focus

ITC has caught the attention of market players.

Dealers said there was active buying in the counter after a long time. The talk is that the company's refocusing its business and diversifying into new areas such as retailing is positive for the stock.

Moreover, the e-chaupal has also brought good growth for the company and is likely to add to the bottomline in the next couple of quarters. The company has ventured into rural retailing by opening chaupal sagar retail stores.

Market players are bullish on the concept of rural retailing. However, some dealers attributed the rise in the stock price to maintaining the key indices at higher levels just before the expiry of the derivatives contract.

On Wednesday, the stock gained 5.21 per cent at Rs 1254.45 on the BSE with volumes of 4.24 lakh shares; on the NSE, it closed at Rs 1254.25, up 5.24 per cent, with volumes of 10.38 lakh shares.

VBC Ferro betting on growth

VBC Ferro Alloys was locked in the 5-per cent upper circuit filter on Wednesday. The stock closed at Rs 121.50 on the BSE with volumes of 45,283 shares.

Dealers said the rise in the stock price is due to good growth prospects in the current fiscal. The company has already reported EPS of around Rs 16 in the first half and for the full year, it is likely to be around Rs 35.

Several players have been accumulating the stock on these expectations.

Virendra Verma

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