The Hindu Business Line : Gains on various factors

ORIENT Paper & Industries has been gathering strength on the bourses in the recent past amid huge volumes. Brokers said there were various factors driving interest in the stock.

The hiving of the closed paper plant for Rs 100 crore that would help in retiring the company's debt, getting a CDR package and aid in lowering interest rates, have of course, proved to be major drivers for the stock price.

However, analysts maintain that it is the cement play that sustains interest at the counter. Orient Paper has a 2 million tonne capacity cement plant, of which it has been operating at 1.75 million tonne capacity. This year the plant is expected to operate at 1.85 million tonne capacity.

Additionally, with the paper market reviving in a big way, profits are expected to improve.

Market sources said that there is a perception that the stock is undervalued at these levels considering forward earnings.

The stock ended at Rs 73.45, up 4.48 per cent, with around one lakh shares traded on the BSE. In trems of volumes, the counter has witnessed a 101-per cent surge in volumes as compared to its five-day average volumes.

Fund interest props it up

FUND support reportedly propelled the counter of Allahabad Bank on the bourses on Thursday. Brokers said an FII was mopping up shares.

Analysts maintain that it is more of a valuation play that is driving interest in the counter. The stock is said to be quoting below its adjusted book. According to analysts, the bank is looking at an EPS of Rs 20 this year.

The stock ended at Rs 40.10, up 4.97 per cent, with around 10.94 lakh shares on the BSE.

One more window

THE stock of the media company continued its northward march, buoyed by news of it starting a new channel.

According to market perception, this would boost the company profitability. Analysts reasoned that with the incremental cost to set up another channel being minimal, there is no denying that this move would help them get more revenues.

The stock ended at Rs 97.30, up 5.30 per cent, with around 3.2 lakh shares traded on the BSE.

Deeptha Rajkumar

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