Cheviot Company rose 12.47% to Rs 1,046 at 14:10 IST on BSE after the CCEA approved mandatory use of jute packaging material for foodgrains and sugar.
Meanwhile, the BSE Sensex was up 171.71 points, or 0.69%, to 25,207.76.
On BSE, so far 55,000 shares were traded in the counter, compared with an average volume of 14,000 shares in the past two weeks.
The stock hit a high of Rs 1,070 so far during the day, which is also 52-week high for the counter. The stock hit a low of Rs 962 so far during the day. The stock hit a 52-week low of Rs 293.60 on 17 December 2014.
The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi yesterday, 9 December 2015, gave its approval for mandatory use of jute in packaging for the Jute Year 2015-16 (1 July 2015 to 30 June 2016).
CCEA decided that at least 90% of foodgrain output and 20% of sugar production has been reserved for packaging in jute.
Under the Jute Packaging Materials (Compulsory use in Packing Commodities) Act, 1987 (JPM Act), the government is required to consider and provide for the compulsory use of jute packaging material in the supply and distribution of certain commodities in the interest of production of raw jute and jute packaging material and of persons engaged in the production, CCEA said in a statement.
Net profit of Cheviot Company rose 64.01% to Rs 12.53 crore on 34.43% rise in net sales to Rs 96.91 crore in Q2 September 2015 over Q2 September 2014.
Cheviot Company manufactures jute products and jute fabrics with flexibility to cater to both domestic and international market. The company is renowned for manufacturing technical jute fabrics and fully customized jute shopping bags for export market at the Export Oriented Unit situated at Falta Special Economic Zone in the state of West Bengal, India.
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