The Hindu Business Line : Hindustan Chem: Losing ground

Why Hindustan Organic Chemicals is rapidly losing ground with substantial volume in the last one week? According to the BSE data, the stock finished on Thursday with a loss of 9 per cent at Rs 44 with a volume of 4.2-lakh shares. On the NSE, some 5.15-lakh shares changed hands. In the past one week it has shed 14 per cent in value against a loss of 16 per cent over the last one month. Market sources said that on August 14 and 16 there were sudden buying interest in the cou nter of the State-owned unit. “Since last Friday, the trend has reversed as certain players, who were betting on some developments in the short-term, are now exiting,” said a source. On the NSE alone, the stock recorded a traded quantity of 9.51-lakh shares on August 14 and on August 16 it had a volume of 10.45-lakh shares. The BSE quantity for August 14 and 16 were 11.25-lakh and 12.37-lakh shares respectively.

In July, Business Line had checked with the management, which had clearly indicated that the diversification and organic growth plans, including a proposal for a chemical SEZ, were on the drawing board and may fructify by the end of March 2008 or in 7-8 months’ time. A company official, on condition of anonymity, said: “Proposals would take time to shape up and the company would report to the shareholders in due course.” HOCL started the implementation of the Government-approved rehabilitation plan this year. It proposed new products based on hydrogenation and planned to outsource hydrogen gas at “very economical rate”, which might enhance the profitability of its chemical unit considerably. .

Jayanta Mallick

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