Bull of the Day: Stock that zoomed 46% in 1 month

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Bull of the Day: Stock that zoomed 46% in 1 month

Gokaldas Exports surged 8.60% or Rs 9.80 to close at Rs 123.70 on the BSE. It touched an intraday high of Rs 129.40 and an intraday low of Rs 115.05. There were pending buy orders of 10 shares, with no sellers available. The total traded volumes were of 169,519 shares. It added 46.22% in last one month.

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Gokaldas Exports surged 8.60% or Rs 9.80 to close at Rs 123.70 on the BSE despite a weak market. It touched an intraday high of Rs 129.40 and an intraday low of Rs 115.05. There were pending buy orders of 10 shares, with no sellers available. The total traded volumes were of 169,519 shares. The stock has risen 46.22% in the last one month.

The stock touched its 52-week high of Rs 174.90 and 52-week low of Rs 83.50 on 12 April, 2010 and 10 February, 2011, respectively. Currently, it is trading 29.27% below its 52-week high and 48.14% above its 52-week low. Its market capitalisation stands at Rs 425.23 crore.

The steep rise in stock price is mainly on account of media reports that private equity giant Blackstone is slated to take control at Gokaldas Exports. The textile firm will appoint Blackstone Group nominee, Gautam Chakravarti, as Chief Executive Officer in April, media reports suggest. Chakravarti was appointed as Additional Director on Gokaldas' board in February.

Blackstone's Mauritius unit holds about 68% while the Hinduja family owns 20% in the company. Blackstone had bought 70% in Gokaldas Exports for close to Rs 660 crore in 2007.

What expert says?

SP Tulsian of sptulsian.com said, "Gokaldas Exports is moving largely on account of news on control to be taken over by Blackstone. But I don't think that any improvement in the financial health or a financial turnaround in the company is likely to happen immediately. This is more to do with sentimental effect on the stock because Blackstone has ownership of the company and now they have taken over the management as well."

He further added, "One has to see the turnaround on a fundamental basis and this has to do more with sentimental value. I won't be advising buying. Maybe a rise of about Rs 8-10 from hereon is likely i.e. to Rs 125 but not beyond that. It would be risky to buy or enter the stock now at these levels."

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