The Hindu Business Line : Praj Ind hits upper filter on growth hopes

THE counter of engineering company Praj Industries has continuously been hitting upper circuit in the last few days. In the last one week, the stock price of the company has gained more than 20 per cent.

Dealers said the buying in the counter has come after a strong third quarter result. The talk is that after the result, several institutional investors have started buying the shares of the company. The company, which has shown sharp growth in topline as well as bottomline in the last two years, is likely to show similar growth in the next fiscal also.

This growth will be coming mainly from the export market for erection of ethanol-based fuel plants, a segment that is showing sharp growth.

On Tuesday, the stock was locked in the 5-per cent upper circuit. It closed at Rs 325.25 on the BSE with volumes of 22,111 shares; on the NSE, it closed at Rs 327.30, with volumes of 73,141 shares.

HBL Nife Power gains on FII backing

HBL Nife Power, a company into manufacturing of cadmium and other batteries, is one of the mid-cap stocks that is attracting a lot of foreign institutional investors' buying.

Dealers said the huge growth the company is expected to show from the battery segment and other electronic equipments is leading to active interest of FIIs.

Among the FIIs to have bought the shares of the company is Fidelity. Several market players too have bought the shares of the company on the back of FIIs buying.

The talk is that the next financial year, the company would show a sharp growth; and at current levels also, the stock is undervalued based on next year earnings.

On Tuesday, the stock price of the company gained 5 per cent at Rs 151.95 on the BSE with volumes of 53,458 shares.

Japan funds active

AFTER huge FII inflows from the West in 2004, it is now the turn of the East in 2005. Market talk is that several funds from Japan have shown interest in the Indian market and pumped in million of dollars in the last one week.

Among the biggest investors has been a leading Bank from Japan with a corpus of more than $1 billion.

These funds are embarked just for Asian emerging markets. Of this corpus, a large portion is coming to India.

Another Indian-dedicated fund launched in Japan by US-based investment bank has also raised around $750 million and of this, around 50-60 per cent has already been invested in India.

The huge inflows are likely to continue till the Budget, dealers said.

Virendra Verma

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