Jubilant Industries hits new high; stock soars over 50% in three weeks

The stock moved higher to its record high of Rs 378, up 12% on the BSE on back of heavy volumes.

Jubilant Industries has moved higher to its record high of Rs 378, up 12% on the BSE on back of heavy volumes.

In past three weeks, the stock of Agrochemicals Company has surged 53% from Rs 247 on December 26, 2016, as compared to 5.5% rise in the S&P BSE Sensex. In past six-months, the stock zoomed 126% against 2% decline in the benchmark index.

The trading volumes on the counter jumped more than five-fold with a combined 1.25 million shares changed hands on the BSE and NSE so far.

“The Exchange has sought clarification from Jubilant Industries on January 16, 2017, with reference to volume variation and the reply is awaited,” according to BSE website.

Jubilant Industries had reported a standalone net profit of Rs 1.14 crore for the first half (April to September) of FY17 against a net loss of Rs 76 lakh in the same period last year. On consolidated basis, the company posted profit of Rs 6.04 crore in H1FY17 as compared to profit of Rs 1.21 crore in the same period last fiscal.

Among the other agrochemicals stocks Paushak, UPL, Rallis India and Dhanuka Agritech too were trading higher on the BSE.

The government has decided to double the farm income by 2022 and has taken various initiatives such as increasing minimum support price (MSP), rising farmer awareness on new technologies and formulations etc.

“With an anticipation of certain benefits to the farming sector in the upcoming Finance Bill 2017, Dhanuka Agritech might be in limelight. In long run, the agro chemical company is expected to flourish mainly due to poor farm yield, rising population and growing concerns over food security,” Choice Equity Broking said in a recent note.