The Hindu Business Line : Moser Baer jumps on fresh buying

THE Moser Baer (India) stock on Tuesday was active on emergence of some fresh buying. The stock, before closing at Rs 241.80 (Rs 235.25), touched its intra-day high at Rs 245 on the BSE with around seven times jump in traded volume. On the NSE, the traded quantity surged by over five times.

According to brokers and analysts, the counter commands high price elasticity for its limited liquidity. FIIs, which form largest chunk of investors in the stock, influence the price movement.

Many of the overseas fund houses turn buyers in the stock from time to time depending on the ruling price.

According to the company management, there has been a surge in overall sales in September and it is hopeful of a pick-up in the third quarter.

In the opinion of Mr Gaurav Dua of Anagram Stockbroking, the global over-supply situation in the global CDR and DVDR markets lead to pricing pressure in the first half of the current fiscal for Moser Baer.

According to Morgan Stanley, "further expansion in global CDR capacity has stopped and a shortage of polycarbonate (key raw material) will result in the closing of smaller manufacturers, which account for about 25 per cent of global supply".

A recent report by Morgan Stanley also suggests that oversupply situation in the DVDR market is in for a correction.

The overseas fund appears to be positive about the growth prospect in the long term. However, some analysts feel that the inventory increase of Rs 150 crore during the first two quarters and around 100 per cent capacity utilization do not indicate easing of pricing pressure for Moser Baer. At today's closing, the stock traded at 40 times its 2004-05 first half annualised earnings.

More Stories on : Stock Markets | Stocks | Hardware

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
India Advantage Fund buys Nagarjuna shares

Bears prevail

LS approves Bill on corporatisation of stock exchanges

JP Morgan upgrades India to 'neutral' from 'underweight'

Mid-cap funds sizzle, thanks to rally

NBFC stocks in limelight

Godrej Ind gains on fundamentals

Moser Baer jumps on fresh buying

Outlook may turn positive for BPCL

Exchange for small, mid-cap cos to be operational by Jan

SAT summons DSQ Software chief

Mid-cap, IT indices fare better