The Hindu Business Line : Uniphos Enterprises flares up

The stock of Uniphos Enterprises has been gaining quite sharply on the bourses. The stock has appreciated by about six per cent over a week and gained by about 56 per cent in a month.

Market men attribute this increase in buying interest to Uniphos’ substantial investment in the United Phosphorus.

Uniphos owns 5.9 per cent or about 1.1 crore shares of United Phosphorus, which translates to about Rs 410 crore as per Tuesday’s closing price of the latter. This, when compared to Uniphos Enterprises’ market cap of Rs 139 crore, is likely to leave a significant untapped value for investors, feel the market men explaining the buying in the stock.

In addition to this, they feel that market expectation of corporate announcement on the acquisition front could also have triggered the recent appreciation on the counter.

Funds’ holding

According to June quarter figure filed with exchanges, among the company’s major shareholders are UBS Securities Asia (7.99 per cent), Matterhorn Ventures (4.87 per cent), HDFC Trustees (4.31 per cent), LIC (3.53 per cent) Birla Sun Life (4.24 per cent), Morgan Stanley (1.5 per cent), Clarkenwell (1.37 per cent) and Transportation Infrastructure Ltd (1.34 per cent).

K.S. Badri Narayanan

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