Gulshan Polyols

Gulshan Polyols breached the upper circuit today at Rs.319 after Reliance Mid and Small Cap Fund bought 5,95,000 shares or 6.7% stake in the company. In fact over the past couple of days, the stock has attracted a lot of institutional interest. And this sudden spike up on interest on the counter is pretty surprising as till end of Q3FY15, 31st Dec 2014 to be more specific, neither an FII nor DII held even a single share in the company. Promoters stake stands at 68.77%, which has come down from 72.30% as at 30th Sept 2014.

The company is a manufacturer of chemicals like Sorbitol, Liquid Glucose, Precipitated Calcium Carbonate & Liquid Glucose and this sudden increase in institutional buying could be on the back of its very good financial performance for Q3FY15. The company had ended the third quarter with a 80% (YoY) jump in net profit at Rs.9 crore on a 39% increase in net sales at Rs.114 crore. The good news is that its interest cost has come down 42%.