Alchemist mulls bonus issue, soars

Alchemist climbed 5% to Rs 52.75, after its board decided to meet on 16 October 2006, to consider an issue of bonus shares. As many as 16.16 lakh shares were traded on the BSE.

The stock, after showing a spectacular rise between August-September, has remained range-bound thereafter. From Rs 30 on 7 August, it rallied steadily to Rs 49.50 by 7 September. Thereafter, the stock remained range-bound, moving between Rs 46 and Rs 48. The stock closed at Rs 50.25, on 5 October 2006.

At the current market price of Rs 52.75, Alchemist trades at 18 times its Q1 June 2006 annualized EPS of Rs 2.92.

Earlier in September, Alchemist board approved an amalgamation of Kaiser Hospital, with the company. Located at Panchkula, Chandigarh, Kaiser Hospital is a a 200-bed capacity multi-specialty hospital with modern technology and infrastructure.

Last year, the company de-merged its steel division, IT division and international business division manufacturing wire mesh, IT related activities and import-export. The newly independent company established will be called Alchemist Steel.

Alchemist manufactures world class wire-meshes and wire fabrics in more than 100 grades.

Alchemist had registered a net profit growth of 2.30% to Rs 4.46 crore (Rs 4.36 crore) for Q1 June 2006. Net sales decreased 8.40%, to Rs 71.95 crore (Rs 78.52 crore).