Gravita India rose 1.25% to Rs 40.35 at 12:00 IST on BSE after the company said that it has started commercial production of lead metal from its new recycling plant at Chittoor, Andhra Pradesh.
The announcement was made during market hours today, 5 January 2017.Meanwhile, the BSE Sensex was up 223.71 points, or 0.84%, to 26,856.84.
On the BSE, 30,858 shares were traded in the counter so far, compared with an average volume of 86,585 shares in the past one quarter. The stock had hit a high of Rs 41.70 and a low of Rs 40.20 so far during the day. The stock had hit a 52-week high of Rs 47.75 on 29 November 2016. The stock had hit a record low of Rs 16 on 24 June 2016.
The stock had underperformed the market over the past one month till 4 January 2017, falling 7.33% compared with Sensex's 1.53% gains. The stock had, however, outperformed the market in past one quarter, gaining 21.68% as against Sensex's 6% decline.
The small-cap company has an equity capital of Rs 13.69 crore. Face value per share is Rs 2.
Gravita India said that the plant is having production capacity of 12,000 metric tonnes per annum. The company will grab the opportunity of domestic scrap available with the large telecom players, UPS batteries from IT offices in and around southern markets by having long term contracts to collect their pan India scrap in cost effective manner and by exporting the finished products using the nearest Chennai port, which will help In reducing logistics cost.
The projected cost of the plant is Rs 25 crore for which around Rs 15.46 crore is funded by way of secured term loan from Punjab National Bank and balance from internal accruals of the company.
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The plant will help the company to further strengthen its presence in Southern market and for exports in far East markets.
On a consolidated basis, Gravita India's consolidated net profit jumped 142.2% to Rs 6.83 crore on 48.3% rise in net sales to Rs 154.18 crore in Q2 September 2016 over Q2 September 2015.
Gravita India is engaged in the business of manufacturing of lead metal by recycling & smelting process.
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