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INDIA Glycols, a chemicals company, has been on an upward move in the last few days. On Friday, the stock rose 13.15 per cent at Rs 206.50 on the BSE with volumes of 12.26 lakh shares; on the NSE, it closed at Rs 206.50, up 12.93 per cent, with volumes of 15.19 lakh shares.

India Glycols make mono-ethylene glycol (MEG). Dealers said the interest in the stock is due to the fall in the prices of molasses - a raw material for making MEG. The prices have fallen by 25-30 per cent in the last 3-4 months and further fall is expected due to good sugarcane crop from where molasses is extracted.

On the other hand, the cost of production of MEG is increasing for other companies which use petrochemicals as raw material due to rise in oil prices.

The talk is that several market players have accumulated the stock in the last few days, as it is one of the under-valued chemicals companies.

Betting on revamp plans

FLEX Industries, a company into flexible packing business, has been on the rise in the last couple of trading sessions. The stock has risen more than 35 per cent in just two days.

On Friday, the stock rose 19.32 per cent at Rs 98.20 on the BSE with volumes of 48.45 lakh shares; on the NSE, it rose 18.7 per cent at Rs 98.05 with volumes of 1.20 crore shares.

Dealers said the rise in the stock price is due to expectations of positive impact from corporate debt restructuring of the company. The talk is that the company would be able to save interest costs following this.

Several financial institutions have also subscribed to the convertible debentures issue with conversion price of Rs 290-300. Dealers are upbeat on the conversion price. However, company officials were not available for comments on the issue of convertible debentures to financial institutions.

Up on strategic buying hopes

LIQUOR company McDowell rose sharply on Friday. The stock closed at Rs 384.25, up 16.62 per cent, on the BSE with volumes of 30.48 lakh shares; on the NSE, it closed at Rs 387.50, up 17.23 per cent, with volumes of 68.08 lakh shares.

Dealers said the rise in the stock price was due to talk of strategic investors picking stake in the company. The buzz is that the consolidation of the liquor business of UB group will help the company getting a better valuation.

UB plans to merge Shaw Wallace and Herbertsons into McDowell.

Virendra Verma

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