Heard on the street: Buyers flock to Parekh Aluminex counter

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Heard on the street: Buyers flock to Parekh Aluminex counter

This article was posted on Apr 14, 2009 and is filed under Market Outlook

The share price of Parekh Aluminex has been gaining ground in the wake of informed buying by a group of investors. The stock, which closed at Rs 64 on BSE on Monday, has appreciated by almost 29% in a month and by over 12% in the past week.

Brokers said the stock of this food packaging company is being accumulated by some investors on account of its being ‘attractively valued’ at current levels. According to investment banking sources, one of the sellers at this counter is said to be Merrill Lynch.

The company’s December 31 shareholding pattern reveals Merrill Lynch Capital Markets Espana holds 8.3% stake. While it could not be independently confirmed, sources said that Merrill has been quietly exiting this counter and may be, at a loss.

Merrill is said to have bought the stock through its proprietary book at Rs 300-400 levels. However, with the prop manager having exited the company, the prop book is being liquidated, with the last block of shares being sold over the past few weeks. With a 2.5 PE and expected gross sales of Rs 440 crore for 2009, the stock appears to be very much on the market radar.

Contributed by Deeptha Rajkumar

source: Economicitmes

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