The Hindu Business Line : Real estate move keeps it up

WITH markets sentiment highly hinged on real estate prospects of companies, news of land development or sale are welcomed with big moves in stock prices. One such announcement that propelled the stock to its 52-week high on Monday is that of Eveready Industries.

The company is developing land in the suburbs of Chennai in a big way. It has received upfront payment of Rs 25 crore for the same and would retain 2.2 lakh square feet post development.

This news lifted the stock to an intra-day high of Rs 112. It subsequently lost steam to profit taking and ended at Rs 103.25. Volumes were also high with the BSE recording over 9 lakh shares and the NSE 23 lakh shares.

Analysts say the stock has now built the impact of the news into its price and the profit booking at the higher levels during the day reinforces this perception.

At new high on sector reading

AFTER the closure of the initial public offering, the stock of HT Media is to be listed later this week. The IPO of HT Media saw high demand and was subscribed around 20.86 times. The offer was for 69.95 lakh shares at a price band of Rs 445 to Rs 530 a share. The cut-off price was set at Rs 530.

Dealers say ahead of its listing, investor interest has perked up in the stock of the other print media company - Deccan Chronicle. The interest in the sector helped buoy the stock of Deccan Chronicle to its 52-week high on Monday.

The stock, which opened at Rs 297.70, touched an intra-day high of Rs 375 and closed with a net gain of Rs 47.05 at Rs 344.75 on the BSE.

The company has also called for a board meeting on September 5 to discuss organic and inorganic development, as well as a GDR issue. Dealers say that growth prospects of the company are being re-valued in light of possible announcements after the board meeting.

Betting on growth

AFTER lying low for over a month, Accel Transmatics (formerly Transmatic Systems Ltd) surged again on Monday. The stock inched towards its 52-week high, touching Rs 53.50 intra-day. It gained close to 10 per cent on Monday at Rs 50.65.

Dealers say that business prospects of the company are looking up leading to renewed interest in the stock. There are also speculations of a possible private placement by the company. The company has expanded its operations and the restructuring efforts it undertook over the last year are beginning to bear fruit, according to analysts.

Veena Venugopal

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