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Nalini D'Souza
Mumbai, Nov 10: Vikas WSP, a non-specified group stock, has suddenly gained favour among market participants. A section of market players attribute this renewed interest in the scrip to the company's strategy of moving towards a `zero-debt' phase.
According to market sources, the renewed interest was triggered by the meeting of the top brass of Vikas with fund managers in October. During this meeting the management made a strong case for not declaring a bonus issue during the current fiscal and rather emphasised on the strategy of making the company a zero debt company. Moreover, the company's exports of `Quar Polymer' targeted at a price of $ 2,500 per unit, according to analysts, helps the company assure handsome returns to the investors during the financial year 1999-2000.
The stock is currently trading at an EPS of Rs 50, up from the last fiscal EPS of Rs 37.50. Market was agog with rumours that the stock should breach its previous 52 week high of Rs 157.50 on account of the continuous bouts of demandat every supply. In about four trading sessions during the period between November 3 and November 9, the stock has appreciated by over 30 per cent to trade at Rs 147 levels. On Tuesday, the stock hit the upper end of the price band at Rs 151, however, due to profit taking at higher levels closed slightly lower at Rs 147.
Similarly, the counter has also registered a steep rise in its traded volumes on the local bourses. On the BSE the stock has registered a sharp rise in its volumes from a low of 15,100 shares on November 5 to a high of 1.56 lakh shares on November 9 and 3.41 lakh shares on November 10.
Interestingly, according to market sources Morgan Stanley has sold a considerable chunk of over 8 lakh shares in the market through open deals and negotiated channel during the last week of October. However, this could not be confirmed.
According to a section of market players the steady rise in the stock price has been backed by rumours of pending buy orders with Jardine Fleming broking and Genesis.Among the domestic players UTI was also rumoured to have bought considerable chunk of these stocks at the lower levels. Market sources attributed the initial round of purchases to the attempts made by FIIs to warehouse shares for a shareholder of the company who intends to increase his stake. Although the stock is not quoted at the kerb, market is agog with rumours that the stock will trade at Rs 170 levels by this weekend.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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