Kalindee Rail chugs into green

Kalindee Rail is extremely volatile today. Opening at Rs.64.50, the stock went down to Rs.61.05 and has since then shot up to Rs.67 its intra day high. Volumes are huge, up almost 3 times over two weeks average at 45,000 shares today.

The stock first tanked on the back of its very poor numbers for Q1FY14 wherein total income fell 21% (YoY) at Rs.41 crore and the company was pushed in to the red, with a net loss at Rs.11.5 crore v/s net profit at Rs.2 crore.  But it soon spurted up, shrugging of this poor show on news that Texmaco might take control of the company by October, as soon as the open offer closes in September.

Currently, the open offer from Texmaco at Rs 68 a share will remain open till September 26, unless extended further and there is news that if needed, to get the 30% stake, the company might have to relook at hiking the open offer price. The other company, Jupiter Metal, which is also racing to buy the company had made a counter offer at Rs.70/share.