BackPrakash Industries’ shares double in last six weeks on higher volumes
Prakash Industries' board members will meet on 14 February to consider its December-quarter earnings and also demerger of its PVC pipe division
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Mumbai: Shares of Prakash Industries Ltd surged over 100% in the last six weeks on the back of higher volumes.
The company’s board members will meet on 14 February to consider its December-quarter earnings and also demerger of its PVC pipe division.
According to two Bloomberg analyst estimates, the company may post net profit of Rs11.15 crore while net sales will be at Rs507.70 crore.
On 27 January, the company informed to exchanges that it secured coal linkages for sponge iron, auction conducted by Coal India Ltd, of total quantity of 649,300 metric tonne per annum for the next five years from various mines of South Eastern Coalfields Ltd in Chhattisgarh for which the company will sign fuel supply agreement.
The said linkages will provide long term stability in the operations as well as cost savings in sponge iron production at its Chhattisgarh steel plant, the company added.
With this sourcing of coal the company expects that the operating margins and profitability would improve significantly in the following years.
In September quarter, the company reported a net profit of ₹ 4.54 crore, against ₹ 0.31 crore a year ago.
Net sales rose 11.5% to ₹ 556.42 crore.
Prakash Industries Limited manufactures steel, ferro alloys, and PVC pipes. The company exports iron ore and silico manganese.
On Monday, the stock gained as much as 13.5% and touched a high of ₹ 88.50 a share—a level last seen on 6 August 2014. Since 26 December, the stock gained over 105.6% from ₹ 43.15 a share. So far this year it jumped over 95.8%.
The scrip ended at ₹ 83.65 on BSE, up 7.24% from previous close while India’s benchmark Sensex Index rose 0.70% to closed at 28439.28 points.
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