Quarterly Show Buoys Cmc 8.5%

The scrip price of CMC Ltd rose 8.5 per cent during intra-day trades before settling down at Rs 394.85, marginally lower than its previous close of Rs 401.75. Dealers said the buoyancy in the scrip was due to the jump in the third quarter results. The company reported a Rs 7 crore net profit, nearly four times that of the previous year.

Volumes on the Bombay Stock Exchange were 1.36 lakh shares. The scrip opened at Rs 4.7.95 and during the day touched a high was Rs 436. The low for day was Rs 390.25.

The price of the scrip has almost doubled from the divestment price of around Rs 200 after the Tatas took management control last year. The change in management is expected to yield positive results for the company in terms of a change in the way that the business is run while recently it bagged a Rs 15 crore order from New India Assurance. There are also talks of a reverse merger with Tata Consultancy Services.

Analysts tracking the company said there was a good possibility of the company merging with any other Tata group companies such as Tata Technologies among others.