Stone India scrip back on track

Shares of Stone India, a railway equipment manufacturing company, part of the GP Goenka Group have been steadily rising over the last one month.

The stock had been in demand till December last year, when it had touched its peak of Rs 219. But since then, the shares have been steadily drifting lower, though the company has been turning in a decent performance on the operating front.

Dealers say some institutional investors had been offloading shares in the past couple of months, which in turn is being mopped by punters bullish on the stock. Analysts predict a re-rating at this counter, on the perception that the company will mimic railway growth.

Stone India was in the news recently for having entered into a technical collaboration agreement with the Japan-based Sumitomo Electric Industries (Hybrid Products Division) for manufacturing air springs for the Indian Railways. The stock closed at Rs 151.60 on BSE, up 3.13%. Over the past one month, the stock has gained nearly 18%.