Stock watch: Anant Raj Industries

The Anant Raj Industries stock is witnessing increased investor interest. Recently, Reliance Mutual Fund has bought three lakh shares on the counter.

On Thursday, the stock closed two per cent higher at Rs 357.35. The BSE counter witnessed volumes of more than 86,000 shares. The stock has appreciated more than 11 per cent in the past month, supported by soaring volumes.

Anant Raj Industries, a ceramic tile manufacturer, recently merged itself with five companies engaged in businesses of development of real estate, construction and investment in the hospitality sector.

Recently, the company also allotted 25 lakh equity shares and 15 lakh convertible warrants, on preferential basis to foreign and domestic investors to raise Rs 43.75 crore.

It plans to utilise its proceeds for real estate development, hospitality services and other ongoing projects. For Q2FY06, the company's sales increased by 58.9 per cent at Rs 9.6 crore.

The company recorded a net profit of Rs 2.57 crore in the same period compared to a loss of Rs 3 lakh in the corresponding period of the previous period.

According to analysts, the company is expected to benefit from the boom in the housing sector of the economy. With rising disposable income and higher standard of living, there is a high demand for tiles in the country.