Adlabs Jumps On Spread Plan

The scrip of Adlabs today hit a 52-week high of Rs 88.80 after the company said that it would soon decide on an expansion and diversification plan.

The stock closed higher by 3.56 per cent at Rs 81.55 after hitting an upper circuit. Initially, the scrip soared by Rs 8 (10 per cent) to Rs 86. The scrip recorded volumes of 5.78 lakh shares.

In the last four trading sessions, the scrip has moved up 17.08 per cent from Rs 69.65 as on May 27 to Rs 81.55 today. Volumes too rose 15 times from 36,105 shares as on May 27 to 5.78 lakh shares today.

 

Dealers said that foreign funds have been buying into the scrip. The Singapore-based Alliance Capital is one such fund which is active in the counter, according to market sources.

With regard to the company's foray into film production, analysts said the company plans to come out with medium budget movies. According to them, Adlabs foray into films would enable the company to become a completely integrated player having presence in all the major streams of the film making process (production, processing, printing and exhibition).

The exhibition business of the company is also picking up. The company's 520-seater IMAX theatre provides the world's most impressive watching experience. The company is currently running six shows per day with 40 per cent capacity utilisation. Adlabs' four multiplexes have also started their operation with four shows per day with a capacity utilisation of around 40-45 per cent.