Market Gossip

Maharashtra Seamless up on order buzz

The stock price of Maharashtra Seamless has risen around 24% in the past one month. Market talk is that the DP Jindal Group company has bagged an export order worth Rs 160 crore from the US and Latin America. Dealers tracking the counter expect the announcement to be made over the next couple of days.

When contacted, company officials declined to comment on the issue. The stock closed at Rs 613, down 3% from the previous day. Last month, JP Morgan had initiated coverage on the stock with an overweight rating and a target price of Rs 580.

According to the broking house, margins could be under pressure during the current financial year because of high price of steel billets, which the company buys in the spot market. JP Morgan expects margins to improve in the next financial year as new orders would be booked at higher realisations.

Acquisition talk breathes life into Wockhardt stock

Until some days ago investing in pharma stocks was not considered a wise decision by market mandarins. However, over the past two trading sessions there has been sustained buying in the counter of Wockhardt.

According to market sources, domestic funds and operators are buying Wockhardt on expectations that the company will soon go in for one more acquisition in the US. The company recently acquired US-based Morton Grove Pharmaceuticals, a liquid generic and speciality dermatology company, for around $80 million.

A section of the market, however, feels while the company would be scouting for acquisitions, but it maybe some time before Wockhardt signs a deal. Wockhardt ended 2.5% higher at Rs 408 on BSE on Thursday.

Aditya Birla Nuvo gains from Rel Cap valuation

Aditya Birla Nuvo stock was in demand despite the overall weakness in the market on Thursday. The stock hit a new high of Rs 1,820 before closing at Rs 1,797.50, up 6.4% over the previous close. Dealers tracking the counter say the sudden flurry of activity on Thursday was largely sentiment driven and could have to do with the valuation assigned to Reliance Mutual Fund following Eton Park buying a 5% stake for Rs 501 crore.

Reliance Mutual Fund has been valued at Rs 10,000 crore, which works out to 13% of its total assets under management. If a similar yardstick is applied, the valuation of Birla Sun Life AMC — in which Aditya Birla Nuvo holds 50% — works out to around Rs 4,500 crore.