i Develop Stocks Advisory

Bombay Dyeing denies real-estate division hive-off The stock of Bombay Dyeing has been gaining sharply in the last few days accompanied by increased volumes. The low delivery volumes were only adding to the speculative pressure in the scrip. The stock has gained 71.40 per cent during the last one month and 23 per cent in the last one week on the BSE. Trading volumes, which were around 10,000 on April 1 on the BSE, zoomed to 18.6-lakh shares last week. On Friday, volumes stood at 8.5-lakh shares, higher than its two-week average of 8-lakh shares. The deliverable quantity of just 5 per cent on Friday suggests increased day-trading activity in the counter, which is much lower than April month deliverable ratio of about 19 per cent. The company recently disclosed to the stock exchanges that Perman Project Supports Ltd and Bombay Burmah Trading Corp Ltd have hiked stake in the company during March. Market grapevine has it that the management of Bombay Dyeing is considering de-merger of its real estate business into a separate company. However, when contracted, the Company Secretary said that these are mere market speculations. “There is no such proposal,” he told Business Line. The company is scheduled to announce quarterly and full-year financial performance on May 26.