Financial Daily from THE HINDU group of publications
Thursday, Sep 22, 2005
Columns - Ear to the ground
Nilkamal up on expansion plans
NILKAMAL Plastics continues to hold investors' interest. Dealers say that expansion plans of the company are driving value-investors to the counter. The company recently unveiled plans for its retail foray.
Its first store, under the brand name `@home,' has been launched in Pune. The company plans to have four such stores operational by October. Of this, two are planned in Mumbai and one in Ahmedabad.
Analysts say that the company plans to allow franchisees to operate under the brand and help expand the network of stores. The retail thrust and other expansion strategies are seen as adding value to the counter.
The stock, which touched its 52-week high of Rs 173 on Wednesday, closed at Rs 161.45.
Volumes were also robust, with NSE recording over 4.1 lakh shares.
Profit-taking clips Glenmark Pharma
GLENMARK Pharmaceuticals has been slipping on profit-booking in the last few trading sessions.
The stock, which was trading around Rs 350 last week, slipped to an intra-day low of Rs 297 on Wednesday.
Overall, the counter has shed close to 10 per cent in the last five trading sessions.
Dealers say that under the current market conditions, investors are jittery about this stock, as it usually tends to be volatile with very sharp highs and lows.
Investors, who want to play it safe at the 8,400 plus levels, are moving out of this counter, said analysts.
Some brokerages are advising clients to try and re-enter the stock at lower levels.
With the Ministry of Finance and SEBI cautioning against the sharp rise in some penny stocks, small-cap stocks are getting trounced.
The BSE small cap index registered the sharpest fall on Wednesday. While it shed 464 points during the intra-day trading, it ended the day with an erosion of 3.72 per cent at 6,039.57.
With official affirmations of fundamental-based movement in large-cap stocks, dealers say that there are signs of panic in the counters of small and medium sized companies.
Investors, especially retail investors, wary of burning their fingers, are seeking exit options from small caps and relatively illiquid mid-cap counters.
Several small and mid-cap counters saw only sellers on Wednesday.
Some of the big losers of the day in the BSE Small Cap index were Hotline Glass, which shed 10.47 per cent, Gulf Oil Corporation, which closed trade at a loss of 9.84 per cent and Timex Watches, which lost 9.82 per cent.
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