The Hindu Business Line : Su-Raj Diamonds glows on retailing plan

THE Su-Raj Diamonds & Jewellery stock is shining in the market on growth prospects as also its proposed foray into jewellery retailing like Titan. The stock finished 3.26 per cent, up with a traded quantity of around 1.85 lakh shares on the BSE.

According to dealers, a section of the market players is on the accumulation mode expecting a sharp upward trajectory in the company's growth.

According to market sources, the retailing plan, which is expected to be rolled out shortly, would add glow to the valuation of the stock. It is understood that Forever Precious Jewellery and Diamonds Ltd, in which Su-raj has a stake of 49 per cent, would be the retail vehicle.

Analysts pointed out that at Thursday's closing price of Rs 44.30 it traded at just 5.8 times its 2004-05 EPS of Rs 7.70. The dividend yield is 2.7 per cent.

The Rs 1,028-crore company's market capitalisation is only around Rs 166 crore. This could be an indication of growth opportunity in the quarters ahead, feel brokers.

Excel Glasses on 52-week high

THE Excel Glasses counter on Thursday created its new 52-week high and finished with a gain of around 19 per cent. The stock's volume on the BSE was near 7.90 lakh shares, six times its two-week average on the bourse.

According market sources, the stock is ringing on excellent turnaround (around 90 per cent growth in income) in 2004-05 after capacity expansion, reduction in borrowing and power costs.

The company, which makes glass bottles, has a technological edge over its peers in glass printing, is said to have bagged major orders from Pepsi, Coca-Cola and GSK.

Certain market players hope that the sales growth momentum is likely to continue, if not accelerate, in this fiscal.

According to analysts, demand for Excel products has been surging on secular growth in food processing industry. "In fact there is a shortage in the glass printed products, which fetches a premium in the market place", an industry insider said.

Propelled by order talk

PRATIK Panels, a penny stock, had notched up a pound of gain on Thursday and closed at its year-high of Rs 5.76, up 20 per cent on the BSE, on unconfirmed news that it had recently bagged orders worth Rs 25 crore, nearly double its annual turnover.

The company, which is into manufacturing of wooden panels, has been seeing growth in demand for its products on the back of construction boom in the urban centres across the country.

The stock is considered by some market players as a very cheap instrument to participate in the construction story. The profitable company stock has a book value of Rs 13, analysts mentioned.

Jayanta Mallick

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