The Hindu Business Line : SRF betting on Q3 numbers

Dealers said the results are likely to be better than the previous quarters of current financial year. The main reason behind this optimism is the full impact of the Government levying anti-dumping duty on nylon tyre cord on imports from China since mid-September.

Company's profits were affected due to dumping from Chinese manufacturers.

The talk is that net profit for December quarter should be higher by around 25-30 per cent compared with September quarter. In September, it reported net profit of Rs 10.56 crore while for the June quarter, the company posted a net profit of Rs 12.06 crore.

On Tuesday, SRF gained 5.79 per cent at Rs 72.20 on the BSE with volumes of 1.28 lakh shares; on the NSE, it closed at Rs 72.15, up 6.26 per cent, with volumes of 14.39 lakh shares.

Indoco Remedies down on valuation concern

AFTER listing at a good premium to the issue price of Rs 245 last week, the stock of pharma company Indoco Remedies has been on a downward move. On Tuesday also the stock witnessed a fall in its share price.

Dealers said the fall is due to the over valuation of the stock compared to its peers based on price-earning ratio. Dealers said after the December quarter results, the stock trades at 15 times its EPS (annualised), which is much higher than its competitors.

The selling in the counter is also coming from investors who had purchased shares on borrowed funds. Due to the weak sentiment prevailing in the overall market, these players are booking profits.

On Tuesday, the stock closed at Rs 368.15, down 0.74 per cent on the BSE with volumes of 12.63 lakh shares; on the NSE, it closed at Rs 367.65, down 0.89 per cent, with volumes of 13.55 lakh shares.

FII turns bearish on Petronet LNG

ANOTHER stock that is being slowly witnessing selling is Petronet LNG.

Dealers said there is selling from some of the FIIs after a leading broking firm has turned bearish on the stock after sharp run-up in the stock. The price has increased from Rs 25 levels in the last few weeks.

The firm believes that the company is unlikely to report profit in the current fiscal.

The stock looks overvalued at current levels even after considering the profit the company is likely to make in next fiscal (full year), the FII believes.

However, the stock closed at Rs 40.45, up 1.51 per cent, on the BSE with volumes of 33.55 lakh shares on Tuesday; on the NSE, it closed at Rs 40.45, up 1 per cent, with volumes of 78.75 lakh shares.

Virendra Verma

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