Emami Paper Mills rose 4.61% to Rs 126.95 at 11:50 IST on BSE after the company said it received in principle approval from Odisha government for a proposed expansion plan.
The announcement was made after market hours yesterday, 3 July 2017.Meanwhile, the S&P BSE Sensex was almost flat at 31,221.38.
On the BSE, 18,000 shares were traded in the counter so far, compared with average daily volumes of 7,178 shares in the past one quarter. The stock had hit a high of Rs 134 and a low of Rs 126.05 so far during the day. The stock hit a record high of Rs 152.20 on 3 November 2016. The stock hit a 52-week low of Rs 54 on 11 July 2016.
The stock had outperformed the market over the past one month till 3 July 2017, rising 19.67% compared with 0.17% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 1.70% as against Sensex's 4.38% rise. The scrip had outperformed the market in past one year, rising 114.02% as against Sensex's 14.45% rise.
The small-cap company has equity capital of Rs 12.10 crore. Face value per share is Rs 2.
Emami Paper Mills said it received in principle approval from Odisha Government for proposed expansion plan for increasing capacity of multi layer coated board manufacturing at Balgopalpur in Odisha at an estimated cost of Rs 650 crore, subject to necessary approvals from the board of directors and other concerned.
Buoyed by the performance of its first packaging unit at Balasore, touching almost 180,000 tonnes per annum (TPA) mark, Emami Paper Mills is now planning to put in place a similar plant of multi-layer coated board. This will result in doubling its present capacity and the significant market share. Encouraged by good market response and growth in packaging sector, the company is now conceptualising another big ticket expansion in the form of similar plant at Balasore with somewhat similar capacity, details of which are being worked out. Emami Paper Mills said it will furnish further information in this context as soon as the decision is firmed up at the board level and after getting further necessary approvals, the company said in a statement.
Net profit of Emami Paper Mills declined 94.02% to Rs 1.40 on 110.26% rise in net sales to Rs 300.84 crore in Q4 March 2017 over Q4 March 2016.
Emami Paper Mills, a part of Emami Group, specializes in the manufacture of newsprint, writing & printing paper and multilayer coated board.
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