KPR Mill rose 4.25% to Rs 193.95 at 15:08 IST on BSE after the company said that in order to meet increased demand in garment exports, it has initiated expansion plans in its garment business.
The announcement was made during market hours today, 10 June 2014.
Meanwhile, the S&P BSE Sensex was down 1.73 points or 0.01% at 25,578.48.
On BSE, so far 46,000 shares were traded in the counter as against average daily volume of 22,152 shares in the past one quarter.
The stock hit a high of Rs 197.25 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 182.30 so far during the day. The stock had hit a 52-week low of Rs 104.45 on 25 March 2014.
The company had outperformed the market over the past one month till 9 June 2014, surging 44.67% compared with Sensex's 11.25% rise. The scrip had also outperformed the market in past one quarter, jumping 59.09% as against Sensex's 16.7% rise.
The small-cap company has equity capital of Rs 37.68 crore. Face value per share is Rs 10.
KPR Mill said that besides expanding capacity of its existing facility, it adds up a new facility near Tirupur - the Asia's largest knitwear cluster.
Among the expansion plans, the company shall add capacity addition of 10 million pieces per annum at existing garment facility. This shall increase its present capacity of 30 million pieces to 40 million pieces per annum (single shift). Since major infrastructures are already in place, its operation is expected during the first quarter of FY 2015, KPR Mill said. It would result in creation of direct employment for about 1,000 people, the company said in a statement.
At Thekkalur, near Tirupur, a new unit with 12 million pieces per annum capacity is being set up. Land has already been acquired and construction work has commenced. It is expected to become operational during the fourth quarter of FY 2015. It would result in creation of direct employment for about 1,200 people, KPR Mill said.
These capacity additions are expected to enhance the overall garment operations of KPR by over 50% in two years.
KPR Mill's net profit surged 67.8% to Rs 39.82 crore on 27.3% growth in net sales to Rs 559.11 crore in Q4 March 2014 over Q4 March 2013.
KPR Mill is engaged in manufacture of readymade knitted apparel, cotton knitted fabric and yarn in India.
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