The Hindu Business Line : Hope on revamp drive

Talk is that this Mafaltal group company is expected to do well in the next few quarters as it has paid most of the dues following the restructuring of Mafatlal Industries. Part of the infusion of funds for restructuring is funded through rights issue, which was completed recently.

Dealers said most of the problems and financial liability of the company are over and the company can now focus on its business. Dealers said the company is focusing on agrochemicals and pesticides with fluorine as base chemicals.

According to market players, the EPS of the company on increased equity capital of Rs 10 crore is expected to be around Rs 40.

Some of the broking firms, which have met the management, have started advising their clients to buy the shares of the company. On Wednesday, the stock price of the company closed at Rs 113, down 0.26 per cent on the BSE with volumes of 29,249 shares.

SREI Infra gains on funds' interest

THE counter of SREI Infrastructure Finance (earlier SREI International Finance) has caught the attention of a few fund managers.

Reliance Mutual Fund had bought large quantity of company's shares a few weeks back. Dealers said with the boom in the infrastructure sector and most of the companies in this business performing well, SREI should also do well.

Most of the listed construction companies, which borrow from SREI, are trading at price-earning ratio of 8-10 while SREI is trading at half of it, feel fund managers.

Talk is that several fund managers are actively picking the stock at current levels as it is undervalued and also provides a good dividend yield.

Some buying in the counter from a few funds was seen on Wednesday.

The stock closed at Rs 23.50, up 9.3 per cent, with volumes of 81,244 shares on the BSE; on the NSE, it closed at Rs 23.40, up 8.08 per cent, with volumes of 1.69 lakh shares.

Hedge funds sell index

AFTER opening firm in morning, the BSE Sensex and the NSE Nifty closed lower. Dealers said the fall in the indices was mainly due to heavy selling from hedge funds. Talk in the market was that these funds had entered the market when Sensex was around 5300-5400 levels last month and in a very short period they have achieved their target returns, dealers said.

Virendra Verma

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