Meghmani Organics surged 7.61% to Rs 29 at 15:19 IST on BSE after the company said its subsidiary has commenced commercial production of caustic potash-flake at its existing manufacturing facility situated at GIDC Dahej, Bharuch in Gujarat.
The announcement was made during market hours today, 22 April 2016.Meanwhile, the S&P BSE Sensex was down 46.83 points or 0.18% at 25,833.55.
The stock surged on heavy volumes. On BSE, so far 16.83 lakh shares were traded in the counter as against average daily volume of 2.75 lakh shares in the past one quarter. The stock hit a high of Rs 29.80 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 26.55 so far during the day. The stock had hit a 52-week low of Rs 14.50 on 7 May 2015. The stock had outperformed the market over the past one month till 21 April 2016, gaining 27.73% compared with Sensex's 2.35% rise. The scrip had also outperformed the market in past one quarter, advancing 41.84% as against Sensex's 8% rise.
The small-cap company has equity capital of Rs 25.43 crore. Face value per share is Rs 1.
Meghmani Organics' subsidiary Meghmani Finechem (MFL) has commenced commercial production of caustic potash-flake (KOH) of 60 Mt per day on 21 April 2016, at its existing manufacturing facility situated at GIDC Dahej, Bharuch in Gujarat. MFL has successfully commissioned the KOH project within the estimated project cost of Rs 65 crore. The cost of the project has been funded from internal accrual. As a result in full year of operation of FY 2016-17 MFL is expected to earn additional revenue of about Rs 125 crore and profit before tax (PBT) of Rs 20 crore, Meghmani Organics said.
On consolidated basis, Meghmani Organics reported net profit of Rs 23.21 crore in Q3 December 2015 compared with net loss of Rs 4.56 crore in Q3 December 2014. Net sales rose 3.9% to Rs 307.43 crore in Q3 December 2015 over Q3 December 2014.
Meghmani Organics is a manufacturer of pigments and agrochemicals. The company specializes in the manufacture of green and blue pigment products that span multiple applications. The company also produces a broad spectrum of commonly used pesticides for crop and non-crop applications.
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