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The Hindustan Motors stock has gained 26 per cent in the last two consecutive sessions on management proposal for “restructuring”. The stock on Tuesday finished at Rs 12.50, up over 5 per cent. The traded quantity in the counter on both the BSE and the NSE stood at 63.69 lakh and 31.46 lakh shares respectively.
The company informed the stock exchanges that the board on January 10 would consider restructuring the company.
According to company sources, the board meeting of the Kolkata-headquartered company would take place in the Capital on Thursday afternoon.
The company, which in 2011 reported net worth erosion to BIFR, retrieved its position by selling some assets. The company reported a loss of Rs 32 crore in the September quarter on a revenue of Rs 132.76 crore. For the fiscal ending 2012, it reported a loss of Rs 29.96 crore.
According to analysts, whenever the company announces restructuring plans, the stock used to react positively. Ramesh Chordia, a sub-broker at a leading Mumbai-based brokerage, said: “It is purely traders’ interest that is driving up the stock price. Since, the fundamentals are still bad , one has to wait for the details of the restructuring plan before entering the stock.”
>jayanta.mallick@thehindu.co.in
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