The Hindu Business Line : HNIs buying props up Gujarat Apollo

Gujarat Apollo Equipment's market price has surged further away from its rights issue price of Rs 100 a share. The stock on Tuesday closed with a gain of around 16 per cent at Rs 216.05 on the BSE. The counter also witnessed a record traded volume on the bourse (7.45 lakh shares against the fortnightly average of 1.17 lakh shares).

According to dealers, the construction and road equipment manufacturer is perceived by certain HNI value investors as under-priced compared to similar players in the same field. Sources maintain that an aggressive accumulation was on in the stock.

An analyst with an institutional brokerage said the annualised earning for the stock is Rs 21 (based on December quarter 2005-06 figure). "If you add up the average sectoral growth rate in profit and revenue, it may surpass the conservative earnings estimates substantially," the analyst commented.

Jayanta Mallick

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