Heard on the street

Better earnings hope lifts Chambal Fertilisers 11%

Shares of Chambal Fertilisers rose about 11% to 89.95 on Thursday with eight times the two-week average volumes amid purchases by a large mutual fund owned by a top industrial group and a few others.

Brokers tracking the stock are optimistic that good monsoon this year would boost earnings. The company’s margins in trading of specialised fertiliser micronutrients and other agrochemicals have expanded to 7-8% from 3-4%. Chambal shares have risen 21% in a week on hope the company’s second-quarter earnings would beat
Street estimates.

Patni climbs on stake sale deal buzz

Shares of Patni Computer rose 3% to Rs 469.30 on Thursday supported by two times the two-week average traded volumes. The speculation is that the company promoters have reached a consensus on the much-awaited sale of their stake.

Talks about promoters and a major shareholder — private equity firm General Atlantic Partners — selling their stakes in Patni Computer have surfaced intermittently in the past, but the company’s management has been mostly silent in this matter. According to dealers, “Merry Lunch” bought the stock on Wednesday.

Brokers said “Pink Panther” and a operator, who shares his initial name with a Union minister, have also been active in the stock in the past few trading sessions.

The company, which will announce the second quarter results on October 27, could report sales of Rs 803 crore, up 3.3% from the April-June quarter, according to an analyst with a broking firm, which tracks the company. Its profit could decline 15% to Rs 125 crore from April-June quarter due to lower treasury income and forex losses, the analyst said.

Contributed by Harish Rao