A B Amre chills out with Voltas

STREET SIGNS

The Voltas stock has been witnessing some really good times of late. The stock has surged 50 per cent in the past month alone, as foreign and desi funds mopped up the stock big time.

Tumble Ton was the lastest to get into the act, as it bought more than two lakh shares at Rs 354 levels. A B Amre has also decided to throw its weight behind the stock, coming out with a buy report. Amre's contention is that the company is showing high growth visibility.

According to Amre, the company's international business is a direct beneficiary of the current capex in the Gulf economies, where Voltas is a recognised player. Also the company is exiting refrigerator manufacturing.

Given Voltas' sustained revenue and earnings growth visibility over the next three years, Amre believes the stock is set to re-rate and has put a target of Rs 500 on the stock.

An Emerging seller
Now strange are the ways of our Emerging Fund. Just last week, the fund had bought the Lyka Labs stock, at Rs 77 levels. Just one full trading session later, it has decided to dump some 1.5 lakh shares.

Sure enough, the stock has gone up to Rs 82 during the time. Profit booking also seems to be the motive behind Emerging Fund's decision to sell Crew BOS, an exporter of fashion accessories such as bags, wallets and footwear.

The company has reputed retailers such as Next, Gap and Chico's as its top customers. Over the past year, the stock has surged 283 per cent.

Rallying on
There was a big deal between Home Maker fund and Reliable fund at the Rallis India counter. While the former was a buyer at the counter, Reliable is said to have sold some two lakh shares at Rs 345.

Rallis India, a Tata group company, has been buzzing on the bourses on strong fundamentals. Desi firms like Tumble Ton has been buying into the counter in the recent past.

According to those in the know, the buzz is that Rallis, which belongs to the Tata group, may eventually get merged with Tata Chemicals, another Tata group company.

The company holds strong position in the market with the number 2 slot and a market share of 13 per cent. The stock has appreciated by 45 per cent in the past month alone.

In other news...
The Swiss Bank Brokerage has decided to book profits at the Amtek India counter. The stock has been on a sustained rise in the past year, with the price moving up nearly 170 per cent.

Even then, the brokerage's decision seems surprising, especially considering that Amtek India had announced last week that it would raise $75 million through issue of GDR or FCCBs.