The Hindu Business Line : Multiplexes up on Adlabs deal

THURSDAY's announcement that Reliance Capital has picked up majority stake in Adlabs Films put the rest of the multiplex stocks in the limelight. Consequently, the stock of Shringar Films moved up close to 20 per cent. The stock opened at Rs 53.30, zoomed to Rs 63.95 and closed at Rs 63.90.

Dealers say that expectation that the company would trudge the same path is purely speculation at this point. The stock was also aided by the fact that there are very few listed entities in the multiplex space.

Gujarat Fluorochemicals, the promoters of the Inox chain of multiplexes, was also in the limelight. It gained Rs 39.50 to Rs 905.90.

Operators buying seen

HESTER Pharmaceuticals, a manufacturer of poultry vaccine, has been a buzz on the bourses lately. The stock touched its 52-week high of Rs 158. However, profit-taking dragged it down towards end at Rs 146.10. The stock has gone up over 30 per cent in the last month of trade.

Dealers say that while the fundamentals of the company are promising, the stock is being largely moved by operator trades. Barring a couple of small brokerages, no one has initiated coverage of the stock. The company has been posting sound results, because of the Government ban on import of poultry vaccines. Domestic markets for the company are expanding and it has also initiated entry into a few foreign markets - in the Middle East and Africa.

On discharge mode

The stock of Amara Raja Batteries, which has been on a bull swing, has begun to cool off a little bit, according to dealers. The stock shed 4.58 per cent on Friday's trade and closed at Rs 138.45. It had touched a 52-week high of Rs 174.90 on June 24.

The stock has been in the limelight lately, with expectations of announcements of several original equipment deals. In June, the company had announced a deal with Hyundai for supply of original batteries to the car manufacturer for the next 12 months. The company has ongoing OE agreements with Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Mahindra & Mahindra, Maruti & Tata Motors. It is also an exclusive supplier to DaimlerChrysler, Ford and Swaraj Mazda.

The board of directors recommended a dividend of 20 per cent on Friday, but it did not infuse enthusiasm in the stock.

Veena Venugopal

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