Gravita India jumped 5.79% to Rs 175.50 at 11:45 IST on BSE after the company announced that it has started commercial production of red lead oxide from its plant at Jaipur.
The announcement was made during market hours today, 5 January 2018.Meanwhile, the S&P BSE Sensex was up 128.27 points or 0.38% at 34,097.91. The S&P BSE Small-Cap advanced 149.80 points or 0.77% at 19,665.44, outperforming the Sensex.
High volumes were witnessed on the counter. On the BSE, 2.35 lakh shares were traded on the counter so far as against the average daily volumes of 1.28 lakh shares in the past one quarter. The stock had hit a high of Rs 179 in intraday trade, which is also a 52-week high for the stock. The stock had hit a low of Rs 165.80 so far during the day. The stock had hit a 52-week low of Rs 39.25 on 4 January 2017.
The stock had outperformed the market over the past one month till 4 January 2018, gaining 10.34% compared with the Sensex's 3.35% rise. The scrip had also outperformed the market over the past one quarter, rising 25.25% as against the Sensex's 7.26% rise. The scrip had also outperformed the market over the past one year, jumping 316.31% as against the Sensex's 27.55% rise.
The small-cap company has equity capital of Rs 13.74 crore. Face value per share is Rs 2.
Gravita India said that the company has started commercial production of lead tetra oxide commercially known as red lead oxide by installing new state of the art continuous process production plant at its Jaipur unit with a capacity of 7,500 metric tonnes per annum.
The production of red lead oxide is a value added product and it will help company to cater new segments like ceramic tiles, crystal glass, anti-corrosive paints and inverter and solar batteries.
The company has made an investment of Rs 1.83 crore for procuring and commissioning of this new modern plant which is invested from internal accruals of the company.
Installation of this plant will help company gain the advantage of diversified product portfolio coupled with increase in top line and bottom line of the company.
Gravita India's consolidated net profit rose 48.7% to Rs 14.22 crore on 45% rise in net sales to Rs 224.67 crore in Q2 September 2017 over Q2 September 2016.
Gravita India is engaged in the business of manufacturing of lead metal by recycling & smelting process.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
