Shares of Balkrishna Industries (BIL) today hit a new 52-week high of Rs 57.50 locked at its 20 per cent upper circuit filter. However, it closed at Rs 55.25, up 15.22 per cent amid a volume of 25,496 shares on the BSE. The surge in stock price is in tandem with the expectation of revival in fortunes of the paper and tyre sector in which the company has a presence, dealers said.
Analysts said the outlook for the industry has turned out positive on account of a sharp rise in paper prices. The revised prices are likely to be sustained at least during the current calendar year. However, the spurt in prices is not linked to any perceptible increase in domestic demand.
Hence, leading players have ventured into the overseas market where margins are enhanced due to export incentives. This leaves room for small and medium players to increase output in the domestic market and still push up local prices, they said.
