Heard on the Street: Rama Newsprint up 14 pc over rising demand

Rama Newsprint saw hectic activity that drove the share price by over 14 pc on huge volumes in an otherwise flat market on Thursday. The stock has rallied 50 per cent in the past five sessions, which analysts attributed to the improvement in sentiment for the company over rising demand for paper and newsprint. Growing interest in the stock is also driven by hopes that Rama Newsprint stands to gain significantly due to the huge property it owns in Gujarat.

The company possesses more than 400 acres of land in Surat district. According to analysts, demand for paper has been growing at the rate of 8 pc annually, which will translate into a steady demand for newsprint. Also, as 60 pc of the country’s newsprint is imported, the fall in the rupee is expected to push up sales of local newsprint, they feel. On Thursday, Rama Newsprint shares closed at Rs 13.7 with total volumes of 8.9 lakh shares compared with the two-week average of 61,000 shares on the BSE.

At the end of session, there were buyers for 28,439 shares, which was more than the sell quantity of 6,507 shares in the counter.