The Hindu Business Line : HLL gains on institutional support

ON a day when there was selling in most of the index stocks, index heavyweight Hindustan Lever Ltd (HLL) bucked the trend. Shares of the FMCG major gained 4.01 per cent at Rs 147.80 on the BSE with volumes of 8.11 lakh shares; on the NSE, it closed at Rs 147.55, up 3.8 per cent, with volumes of 31.24 lakh shares.

Dealers said the interest in the stock is seen from institutional investors. The talk is that several investors have turned bullish on the stock on expectation that the downtrend in the FMCG sector is over and that the December quarter for the company would also be good.

After the price war in various segments throughout 2004, there are indications that the company has come out of all the shocks and is likely to come out with good numbers in 2005.

The company will announce its results on February 11 for 2004 financial year. The company has a January-December financial year.

Wheel of fortune

Tyre company Ceat is being accumulated by select market players. Several institutional investors too have show shown interest in the stock. This is mainly on the expectation of good financial results for the third quarter. It had reported a net loss of Rs 5.1 crore in the September quarter.

The talk is that the third quarter would be much better. The company's plans to enter the truck radial tyre are also bringing interest in the stock.

The steady increase in the market shares is also considered positive. On Monday, Ceat shares were up 3.64 per cent at Rs 62.60 on the BSE with a volume of 58,161 shares; on the NSE, it closed at 62.75, up 4.24 per cent, with a volume of one lakh shares.

Up on 'value pick' tag

In the midst of an overall bullish sentiment towards steel stocks, a stock within this sector which is considered a good value pick is VBC Ferro Alloys.

A domestic broking firm with a focus on retail clients has come out with a `buy' recommendation on the stock.

This is mainly due to the good growth the company is likely to show in the next fiscal. As per the estimates, the company is likely to report earnings per share of around Rs 50 for the next fiscal. On this basis, the firm believes that the stock is undervalued at current levels.

The stock of the company was locked in the 5 per cent upper circuit on the BSE on Monday. It closed at Rs 97.50 with volumes of 10,897 shares.

Virendra Verma

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