The Hindu Business Line : Godrej Ind gains on fundamentals

THE stock price of Godrej Industries Ltd (GIL) has appreciated by almost 30 per cent from around Rs 87 levels as on December 1, to its current levels of Rs 113.

Brokers maintain that the share price gain has been purely on account of fundamentals.

Analysts attribute the run up at this counter to the fact that the stock had not caught with its mid-cap peers and as such was deemed attractively valued at these levels.

Another factor that is also being mooted as a trigger (albeit a long term one) is the demerger/spin off of GIL's investment vehicles, Godrej Global Solutions Ltd and Godrej Remote Services Ltd, once the two achieve critical mass or scale. This is expected to unlock their true potential or value for Godrej.

Godrej Global is a 99.8 per cent subsidiary of GIL and plans to focus on finance and accounting BPO services, while Godrej Remote, another 99.86 per cent subsidiary of GIL, is into the medical transcription business.

The stock of GIL ended the day at Rs 113.75 (a 52-week high) up almost 20 per cent with around 3.11 lakh shares traded on the BSE.

Polyplex up on arm's overseas listing

The stock of Polyplex Corporation Ltd has been garnering sustained support on the bourses in the recent past.

Informed market sources maintain that the gains come a week ahead of its 100 per cent subsidiary, Polyplex (Thailand) being listed on the Bangkok bourse.

The stock, which saw a 9.08 per cent jump in its stock price to Rs 272 (BSE) on Tuesday, has gained by 8.8 per cent from around Rs 250 levels as on December 1.

Analysts speculate that post-listing, the valuation of Polyplex (India) holding in the foreign subsidiary could be around Rs 375-395 per share. The run-up is reportedly in anticipation of the unlocking of value for the parent company.

Sesa Goa jumps on dividend hopes

Rumours of a dividend propelled the counter of Sesa Goa Ltd into positive territory on the bourses on Tuesday.

As per market rumours, the company is likely to announce a dividend of Rs 15. However, there seemed to be no clarity on whether it would be final or interim dividend.

The stock ended the day at Rs 849.25, up 7.17 per cent. with around 3.56 lakh shares traded on the BSE.

Deeptha Rajkumar

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