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THE Gujarat Alkalies and Chemicals stock is in accumulation mode. This is due to the good outlook for the chlor-alkali industry due to the user industries such as paper and pulp, manmade fibre, soaps and detergents witnessing a demand surge.

There has also been a rise in the chlor alkali prices and are expected to remain firm in 2006.

Dealers said the corporate debt restructuring of the company is also paying-off. It has already reduced its debt from Rs 93 crore in 2003 to Rs 60 crore in 2005 and talk is that it will further reduce its debt by paying off high cost debt.

All these factors are seen as positive for the company. On Monday, the stock gained 5.37 per cent at Rs 134.45 on the BSE with volumes of 5.17 lakh shares; on the NSE, it closed at Rs 134.55, up 5.49 per cent with volumes of 7.59 lakh shares.

Vimta Labs betting on contract research

THE stock of Vimta Labs, a leading provider of multi-disciplinary contract research and testing services, has been attracting investors' interest.

This is due to higher offshoring of contract research services and latent demand in food processing and lab testing, dealers feel.

The commissioning of the new research lab in September-October is also seen as positive for the company. Phase-I of the planned expansion of its facility at Hyderabad will fuel the revenue growth.

The benefits of this expansion should start showing from the second half of 2006 fiscal and will lead to substantial growth from fourth quarter of 2006.

But market players are bullish on the company due to huge growth potential from contract research, a segment growing by 30 per cent. On Monday, the stock gained 1.96 per cent at Rs 683.15 on the BSE with volumes of 7,025 shares.

Zen Tech up on defence orders talk

SHARES of Zen Technologies, a manufacturer of advanced training simulators for the security, are buzzing due to good orders from the defence sector.

Due to strong demand from the military and police for its products, the company is likely to grow by 50 per cent and 40 per cent respectively in the current and next fiscals.

The talk is that the demand for training simulators may surge from the armed forces on account of its cost effectiveness.

Demand for simulators from States where insurgency is high and from specialised police forces, which have disproportionately higher expenditure, is likely to drive Zen's sales.

A positive surprise for the company could come from a tender it has submitted for a product for the Indian army, which Zen Technologies has manufactured in alliance with a public sector company.

On Monday, the stock gained 5 per cent at Rs 218.45 on the BSE with volumes of 4,917 shares.

Virendra Verma

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