Pokarna spurted 7.9% to Rs 1,110.20 at 10:35 IST on BSE after the company said that its subsidiary plans to expand production capacity with investment of Rs 325 crore in a greenfield facility.
The announcement was made after market hours on Friday, 13 January 2017.Meanwhile, the S&P BSE Sensex was up 36.08 points or 0.13% at 27,274.14.
On the BSE, 9,532 shares were traded on the counter so far as against the average daily volumes of 4,507 shares in the past one quarter. The stock had hit a high of Rs 1,125 so far during the day, which is also its 52-week high. The stock hit a low of Rs 1,056.90 so far during the day.
The stock had hit a 52-week low of Rs 660 on 17 February 2016. The stock had outperformed the market over the past one month till 13 January 2017, advancing 13.57% compared with the Sensex's 2.02% rise. The scrip had also outperformed the market over the past one quarter, rising 37.18% as against the Sensex's 1.47% fall.
The small-cap company has equity capital of Rs 6.20 crore. Face value per share is Rs 10.
Pokarna said that its wholly owned subsidiary Pokarna Engineered Stone (PESL) plans to expand quartz surfaces production capacity by 130% with investment of Rs 325 crore in a greenfield facility. This investment is expected to be completed by June 2018.
PESL would finance this project through a combination of free cash flow/internal accruals Rs 75 crore and loan facilities Rs 250 crore. PESL is in receipt of financial sanction from its lead banker, for the term loan of Rs 250 crore, for funding the project.
Further, Pokarna's board has approved extending corporate guarantee for the loan facilities to be extended to PESL.
Pokarna's consolidated net profit rose 44.6% to Rs 18.87 crore on 2.1% fall in net sales to Rs 96.49 crore in Q2 September 2016 over Q2 September 2015.
Pokarna, headquartered in Secunderabad, processes granite at its two manufacturing facilities with raw material majorly sourced from its own quarries. The company's quartz operations are handled by its wholly-owned subsidiary Pokarna Engineered Stone.
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