 "Havells India rallies 16% in two days post stock split")
Havells India has rallied 6% to Rs 289, extending its previous day’s 10% surge, after the stock turned ex-stock split on Tuesday.
The stock opened at Rs 280 and touched high of Rs 293, also its record high on National Stock Exchange (NSE).
The company engaged in manufacturing electrical had subdivided the face value of its equity shares to Re 1 from Rs 5.
Stock split increases liquidity of a share as more retail investors buy the share due to its reduced price per share.
The counter has seen huge trading volumes with a combined 3.04 million shares changed hands during first hour of trading compared to 4.5 million shares that were traded yesterday. Meanwhile on an average around sub 200,000 shares that were traded daily in past two weeks before stock split on BSE and NSE.
However, analyst at Motilal Oswal Securities maintains ‘netural’ rating on the stock with target price of Rs 232 (post stock split).
"We cut estimates for FY15/FY16 by 6%/1% to factor in the increased tax rates/higher depreciation charges," analyst said in a report dated July 29 2014.
Havells India’s effective tax rate in Q1FY15 was very high at 28.3% compared to 19.5% in FY14, as tax concessions expired.
The stock opened at Rs 280 and touched high of Rs 293, also its record high on National Stock Exchange (NSE).
The company engaged in manufacturing electrical had subdivided the face value of its equity shares to Re 1 from Rs 5.
Stock split increases liquidity of a share as more retail investors buy the share due to its reduced price per share.
The counter has seen huge trading volumes with a combined 3.04 million shares changed hands during first hour of trading compared to 4.5 million shares that were traded yesterday. Meanwhile on an average around sub 200,000 shares that were traded daily in past two weeks before stock split on BSE and NSE.
However, analyst at Motilal Oswal Securities maintains ‘netural’ rating on the stock with target price of Rs 232 (post stock split).
"We cut estimates for FY15/FY16 by 6%/1% to factor in the increased tax rates/higher depreciation charges," analyst said in a report dated July 29 2014.
Havells India’s effective tax rate in Q1FY15 was very high at 28.3% compared to 19.5% in FY14, as tax concessions expired.