The Hindu Business Line : Growth hope triggers Bannari Amman Spinning

BANNARI Amman Spinning, the recently listed stock, rose sharply on Thursday. The stock rose 18.72 per cent at Rs 128.10 on the BSE with volumes of 17.89 lakh shares; on the NSE, it rose 16.6 per cent at Rs 125.70 with volumes of 20.40 lakh shares.

Dealers said several market players have started buying the shares of the company. The talk is that the stock has been quoting below the issue price of Rs 135 since it was listed despite good outlook for the company.

Dealers said for 2006-07 financial year, the EPS of the company is likely to be more than Rs 20 and based on this expectation the stock is undervalued. Most of the investors who subscribed to the IPO have already sold and some value investors have started buying the shares.

ITI Ltd up on order hopes

ITI Ltd was locked in the 10-per cent upper circuit on Thursday. The stock closed at Rs 78.60 on the BSE with volumes of 25.67 lakh shares; on the NSE, it ended at Rs 78.65 with volumes of 48.88 lakh shares.

Dealers said the rise in the stock price is on talk that the company is likely to get order from telecom companies such as BSNL and MTNL. Both these telecom companies would soon issue tenders for GSM switches and for other telecom initiatives.

Dealers said these are big investments from them and ITI would be preferred over other players. This is due to the Government ownership of these companies.

With these orders, the financial position of ITI is likely to improve and the company could report profits and wipe out large portion of its accumulated losses in the next financial year.

Sanghvi Movers betting on infrastructure

SANGHVI Movers, a leading supplier of cranes, rose on Thursday. It rose 4.45 per cent at Rs 428.25 on the BSE with volumes of 44,222 shares.

Dealers said several fund managers are buying the shares of the company and they are optimistic on the growth.

Dealers said the growth in infrastructure sector would keep the demand for cranes strong. Steady growth of the company on each quarter has also brought interest of market players to the counter. The talk indicated that the company has made huge investment in buying cranes and the impact of this would be seen in the next few quarters.

Virendra Verma

More Stories on : Stock Markets | Ear to the ground

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
India Infoline plans to raise Rs 100 cr

Stamped and harassed — The stamp duty administration needs to be simplified

Bull domination

Growth hope triggers Bannari Amman Spinning

UTI AMC plans to buy tech firm — Sponsor-banks to lend marketing support too

SEBI panel recommends short selling by institutions

SEBI-FMC convergence move to wait for 3 yrs

Market valuations stretched: Gryffon Investment

Afternoon buying lifts benchmarks

Publisher of Dainik Jagran plans IPO by Jan

Union Bank public issue likely before Budget

NIF moots e-voting at shareholders' meetings

`Funds from primary market issues down 25 pc in 2005' — PSU disinvestments boosted 2004 mop-up