Bull of the Day: Stock that hit 52-wk high in volatile mkt

Siemens BSE | NSE 30/05/12 Are Mutual Funds betting on Siemens? Other Stocks in this news GTL | GTL Infrastructure | Honeywell Automation | ITI | Himachal Futuristic Communication | Astra Microwave Products | MIC Electronics | AGC Networks | Gemini Communications |

Riding high on news of the open offer, industry and infrastructure solutions major, Siemens , touched a 52-week high of Rs 884.95. It touched an intraday high of Rs 884.95 and an intraday low of Rs 828. The share rose 17.32% or Rs 126 to end at Rs 853.50 on the BSE. There were pending sell orders of 1,166 shares, with no buyers available. The total traded volumes were of 1,783,327 shares.

Why the run up?

The company's promoters made an open offer to acquire 19.82% stake at Rs 930 per share in the company, reports CNBC-TV18. The company's promoters currently hold 55.18% stake in the company.

The surge in the stock price is enhanced by the open offer price, reflecting a premium of close to 28% over its closing price of January 28.

The company would be making an open offer to public shareholders of Siemens to acquire up to 66,829,060 fully paid-up equity shares constituting 19.82% stake.

Following the completion of the offer, Siemens AG will hold 252,870,150 equity shares in Siemens, representing a 75% stake.

What analyst says:

Shardul Kulkarni from Angel Broking said, "There is lot of newsflow on Siemens. The stock is up 17% in a single trading session. It is very difficult to analyze on the charts as of now. But let the chart pan out over the next couple of trading sessions and only then can one take a call."

He further added, "Overall the weekly chart structure is quite good. Considering that particular structure, I would say that above Rs 870, I think you will see accelerated upward momentum in this particular counter."

CNBC-TV18's Managing Editor Udayan Mukherjee says that many people will see the subscription as a good deal at that price and that could be one of the reasons why the stock may have not fallen, despite a string of disappointing quarters.

He said, "The market always has a sense when things are coming. They waited for a year for the Siemens offer to come and now it is out. There is no denying that Siemens is paying a pretty good price. At Rs 930 per share, that is a significant premium to the current market price of Rs 725."

Also read: At Rs 930 a share, Siemens open offer a great deal: Udayan

Siemens has emerged as a leading inventor, innovator and implementer of leading-edge technology enabled solutions in India, operating in core business segments of Industry, Energy and Healthcare.

Siemens India has 22 companies, providing direct employment to over 17,000 people. Currently, the group has 18 manufacturing plants, a wide network of sales and service offices across the country as well as over 500 channel partners.

Siemens, with its world-class solutions plays a key role in India's quest for developing modern infrastructure.

Peer comparison:

Company	Last Price (Rs)	Market Cap (Rs in Cr)	Sales Turnover  (Rs in Cr)	PAT  (Rs in Cr)
Siemens	853.95	28791.8	9400.07	827.21
GTL	412.95	4010.55	1551.33	158.36
GTL Infra	40.3	3858.11	220.84	2.85
Honeywell Autom	2380.85	2105.03	1175.32	132.8
ITI	36	1036.8	4661.24	-294.43
HFCL	10.05	465.11	311.43	-501.14
Astra Microwave	46.1	377.21	106.78	7.14
MIC Electronics	30.7	320.38	231.64	53.03
AGC Networks	223.1	317.54	496.82	34.95
Gemini Comm	23.85	310.39	213.99	8.81