SK Birla Group manages the following companies:
- Birla VXL manufactures fabrics for suitings under the famous brand name DIGJAM.
- Cimmco Birla is engaged in the manufacture of railway wagons and it was declared as a sick industrial company by the Board of Industrial and Financial Reconstrution (BIFR), at its proceedings held on August 21, 2002.
- Xpro India manufactures bi-axially oriented polypropylene films, co-extruded cast films, synthetic resins etc.
- VXL Technologies is involved in supply of hydraulic & pneumatic subsystems, precision components and electro-mechanical assemblies.
The SK Birla Group companies do not fall under ‘A’ group or ‘B1’ group of BSE.
VXL Technologies is not listed at BSE and NSE. Birla VXL is traded in T group. Cimmco Birla has been suspended from trading at BSE but continues to trade under ticker CIMCOBIRLA at NSE. Xpro India is traded under ‘B2’ group at BSE.
The GP – CK Birla Group manages the following companies in India:
- National Engineering Industries Limited (Bearings)
- Birlasoft Limited (IT services)
- Hindustan Motors Limited (Automobiles)
- Avtec Limited (Automobile components)
- Hyderabad Industries Limited (Fibre cement)
- Orient Paper & Industries Limited (Paper)
- Orient Fans (Fans)
- GMMCO Limited (Construction equipment distribution)
Of these, Hindustan Motors, Hyderabad Industries, Orient Paper & Industries are traded at BSE and NSE; Hyderabad Industries is listed under B2 group at BSE.
Summary:
| Scrip/NSE Ticker | BSE Group | Scrip Code | Price 16-Nov |
| Hindustan Motors (HINDMOTOR) | B1 | 500500 | 41.85 |
| Orient Paper and Industries (ORIENTPPR) | B1 | 502420 | 690.15 |
The following table shows the key financial ratios:
| Scrip | P/E | P/BV | Gain since 01-Jan |
| HINDMOTOR | 50.79 | 7.35 | 22.91 |
| ORIENTPPR | 8.90 | 6.27 | 23.87 |
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Let us now discuss the medium term charts of these stocks.
Hindustan Motors declared a net profit of Rs.13.30 crores for the financial year 2006 – 07 as against a loss of Rs.43.69 crores for the 9 month period between July 2005 – March 2006. The stock, like many others, was a casualty during the market crash between May and June 2006 when the sensex lost more than 30%. It fell from a high of 61.20 to a low of 25.10. It made a new low of 24 during August 2007. This week, it has achieved a bullish breakout with good volumes by closing above its previous resistance at 39. The next resistance for the stock is at 46.40; a weekly close above this may result in stock attempting to test the high at 61.20.
Orient Paper too, fell heavily from 565.40 to 247 during May – June 2006. The stock is bullish in the medium term charts now and it has closed above its resistance at 667.20 made during September 2006 for the last two weeks. But the volumes are relatively lower and it is quite understandable since the crowd may not be willing to bet on a stock that has appreciated almost 40 times since 2001.
If we consider the low of 365 made during April 2007, the stock has almost doubled from this level and its recent high is 717.95. There are no reversal signs in the weekly chart and therefore we expect that the current uptrend should continue. The next immediate target for the stock is around 869.
Conclusion:
Both Hindustan Motors and Orient Paper & Industries are bullish; Hindustan motors has been inconsitent net profit wise while Orient Paper & Industries is reasonably high priced.