The Hindu Business Line : Distribution pushes it to zenith

WITH reports suggesting that Zenith Computers is the second largest distributor of computer hardware in the country, the stock has come into the radar of investors and operators. The stock, which has been zooming up on buying interest, touched its 52-week high intra-day on Tuesday.

The stock opened at Rs 40.35 and moved up to Rs 43.90 before ending at Rs 41.15.

Volumes on the stock were also high, with the BSE reporting trading of over 2.3 lakh shares, on what is otherwise a relatively illiquid counter.

The stock has moved up over 28 per cent in the last month. It was trading in the sub-Rs 30 range before that.

Dealers say the fact that there are very few listed players in the computer hardware segment has helped the sentiment in the stock. HCL Infosystems, the country's largest distributor of IT hardware and peripherals, has been having a good run in the bourses.

Other players in the market, including IBM, HP and Apple, are multinationals that are not listed in the Indian bourses.

Zenith Computers is expected to strengthen its distribution network; and analysts expect positive contribution to its top line from this.

On retail, real estate strength

THE retail and real estate story continues to excite investors in the Phoenix Mills stock. The stock, which has been a fairly consistent buzzer in the bourses for the last six months, hit yet another 52-week high on Tuesday.

The company had earlier announced dividend of 100 per cent, bonus in the ratio of 4:1 and has decided to split the stock from Rs 100 face value to Rs 10.

The stock, which opened at Rs 30,189.75, closed at its intra-day high levels of Rs 30,793.50. . Volumes, however, were not very high. Turnover on the stock has been fairly healthy during the last few trading sessions. The BSE reported total turnover of over Rs 77 lakh on Monday.

Profit taking clips gains

TODAYS Writing Products, the pen manufacturer, which was a darling in the mid-cap segment, is slowly losing steam.

Dealers say that cautious investors are choosing to book profits in the counter at current levels. The stock had touched its 52-week high of Rs 101.30 in June this year, but has steadily slipped since then.

The counter shed over 2 per cent on Tuesday and closed at Rs 79. Over 2.8 lakh shares were traded on BSE on Tuesday.

Veena Venugopal

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