Street signs: Coffee stocks in demand, Mitsui-IHH deal, and more

Coffee stocks in demand

Shares of coffee plantation companies have posted strong gains over the past month. CCL Products has gained 29 per cent, Tata Coffee is up 22 per cent, and Harrisons Malayalam is up 14 per cent. Analysts say the price of coffee in the international markets is hitting new highs due to supply deficit and disruption in the shipping industry. Analysts say the price of Arabica and Robusta coffee is expected to gain further. An analysis by Edelweiss shows shares of domestic coffee companies have a strong correlation to Arabica coffee price, which has shown a strong breakout on technical charts.

Sundar Sethuraman

Mitsui-IHH deal puts focus on Fortis

Japanese firm Mitsui’s proposed buyout of Malaysian firm IHH Healthcare has put the spotlight on Fortis Healthcare. Last week, Bloomberg reported that Mitsui was teaming up with private equity players to make an $11-billion bid for IHH. Northern TK Venture, an affiliate of IHH, is a promoter of Fortis Healthcare with a 31.17 per cent stake. A change in the ownership at IHH will trigger an open offer at Fortis. Under the domestic rules, the new owners of IHH will have to offer to buy 26 per cent from public shareholders of Fortis. “Some HNIs have built positions in Fortis anticipating an upside in case the Mitsui-IHH deal fructifies,” said an analyst. Shares of Fortis Healthcare rose 5.2 per cent on Friday.

Samie Modak

Client addition buoys Angel Broking

Shares of Angel Broking have soared 90 per cent in the past month. Market players say the rally is on the back of stronger-than-expected additions in clients during the March quarter. The Mumbai-based broker added close to a million new customers in the three months to March. This was the highest-ever quarterly addition for the company and 87 per cent more than the preceding quarter. “Angel Broking’s shift to digitisation has helped it grow faster than the top players. If the company is able to sustain the growth in market share, it will be a huge positive,” said an analyst.

Sundar Sethuraman