Hind Lever Chemicals -- In troubled waters

B. Krishnakumar

THE STOCKS from the phosphatic fertiliser industry have not attracted market interest in recent years. The sustained pressure on profitability combined with the lacklustre financial performance reported by these companies have made the stock market turn a blind eye towards the sector.

In tune with the other stocks, the industry major Hind Lever Chemicals has also suffered a steady erosion in its market capitilisation over recent months. As evidence of a reversal in the downtrend has yet to emerge, existing shareholders could look for opportunities to exit from the company.

A reversal in the present downtrend would mean the stock's price should rise above the Rs. 275 mark. Given the technical and fundamental factors, the stock does not appear to have the potential to move above the mentioned level from the current Rs. 183.4. Existing holders could therefore switch to other sectors that enjoy the market's fancy.

(Note: Recommendation in this column is based entirely on the technical analysis of the past price behaviour of the company concerned. There is a risk of loss in trading.)