Kansai Nerolac Paints jumped 4.36% to Rs 504 after the company said that its new manufacturing unit at Goindwal Sahib near Amritsar in Punjab has commenced commercial production.
The announcement was made after trading hours on Friday, 20 September 2019.
Meanwhile, the S&P BSE Sensex was up 956 points or 2.52% to 38,971.09. The market surged after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
As on 31 March 2019, Kansai Nerolac paid a corporate tax of 34.49%.
Shares of Kansai Nerolac surged 9.98% in two trading sessions to its current market price of Rs 504, from a recent closing low of Rs 458.25 on 19 September 2019.
On the BSE, 39,146 shares were traded in the counter so far compared with average daily volumes of 9,696 shares in the past two weeks. The stock hit an intraday high of Rs 510, which is also a 52-week high for the counter. It hit an intraday low of Rs 487 so far during the day. The stock hit a 52-week low of Rs 343.40 on 23 October 2018.
The stock had underperformed the market over the past one month, up 1.67% compared with 1.84% rise in the Sensex. The scrip outperformed the market in past one quarter, up 5.11% as against Sensex's 4.01% rise. The scrip had also outperformed the market in past one year, up 8.20% as against Sensex's 3.18% rise.
Kansai Nerolac's consolidated net profit rose 5.3% to Rs 146.02 crore on a 9.4% increase in net sales to Rs 1,533.30 crore in Q1 June 2019 compared with Q1 June 2018.
Kansai Nerolac Paints is a paint company which offers a range of products, including decorative, automotive coatings and performance coatings.
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