USHA Martin, a specialty steel maker, has started witnessing accumulation from select market players. The accumulation is along with the rise in stock price.

In the last couple of days, the stock has increased by more than 25 per cent. On Thursday, the stock rose 5.23 per cent at Rs 212.20 on the BSE with volumes of 38.83 lakh shares; on the NSE, it closed at Rs 213.30, up 6.12 per cent, with volumes of 85.12 lakh shares.

Dealers said the rise in the stock price is due to backward integration in the form of iron ore and coal. The company is expected to be fully integrated with these two inputs for making steel by 2007. It is also increasing the capacity of steel and steel wire ropes, which will be completed by 2007.

Dealers said once these projects are completed, the EPS of the company will more than double from Rs 13 in 2005 to around Rs 30 by end of 2007 financial year.

Several broking firms too have come out with `buy' reports on the company this week.

Hanil Era Textiles bullish on its ethanol project

HANIL Era Textiles on Thursday was locked in the 20-per cent upper circuit. The stock closed at Rs 59.45 on the BSE with volumes of 16.53 lakh shares; on the NSE, it closed at s 59.65 with volumes of 17.70 lakh shares.

Dealers said the rise in the stock price is due to the company's ethanol project. The talk is that the company has bid for several tenders floated by oil companies for ethanol. The ethanol will be used for mixing with oil to be used as fuel for vehicles.

Several institutional investors too have started buying the shares of the company on expectation of huge growth for the ethanol project.

Even the company's textile division, which is still the core business, is doing well and good growth is expected in the current fiscal.

McDowell gains on consolidation talk

MCDOWELL, a UB group company, is being accumulated by a section of the market players. The talk is that a few informed players are buying the shares ahead of the integration of the company's business with other liquor companies within the group.

Market players expect the merger of Shaw Wallace, Herbertson and other liquor companies with McDowell to happen soon. Dealers said once this happens, the valuation of the company would increase substantially.

On Thursday, the stock rose 6.61 per cent at Rs 430.80 on the BSE with volumes of 1.22 lakh shares; on the NSE, it closed at Rs 431.15, up 6.69 per cent, with volumes of 32.57 lakh shares.

Virendra Verma

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