Paradeep Phosphates share price drops 5% after CPCB orders closure of Odisha plant
- Paradeep Phosphates stock price dropped 5% after CPCB notified plant shutdown in Paradeep, Odisha. Technical analyst expects weak performance, suggests lightening longs on bounce. Company asserts no violation, plant closure for maintenance with no significant financial impact anticipated.
Paradeep Phosphates share price plummeted 5% on Tuesday's session following the Central Pollution Control Board's (CPCB) notification of the plant's shutdown in Paradeep, Odisha. Paradeep Phosphates stock price opened at an intraday low of ₹64.69 apiece on the BSE.
Rajesh Bhosale - Equity Technical and Derivative Analyst at Angel One, said that the Paradeep Phosphates stock price has seen a strong gap-down opening in today's session; however, post-opening, we have seen the price trying to bounce back and has regained most of the lost ground. The technical structure for the counter, however, remains weak and is likely to remain underperformed. Traders can lighten up longs on bounce with ₹70 as resistance and support are seen at ₹62.
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The company in an exchange filing stated that until any directions are carried out and formal authorisation from CPCB is received to commence operations again, the plant will stay closed. On Friday, March 22, the company was notified of this.
The violation, if it was committed at all, was for not adhering to by the guidelines set forth in the letter of consent to operate issued by the Odisha State Pollution Control Board (OSPCB).
Further, the company is certain that it has not committed any violation and will use the correct means to resolve the issue.
The plant has already been shut down for yearly maintenance. Before the regular course of activities resumes, it is anticipated that the situation will be resolved as soon as possible. Thus, there isn't a significant financial impact, said the company in an exchange filing.
Last week the company informed the exchanges that due to a breakdown in the synthesis gas compressor, the company shut down the urea and ammonia factories in Goa. They will notify when the plants start up again.
Primary products manufactured by Paradeep Phosphates include urea, di-ammonium phosphate (DAP), complex fertilizers of NPK grades, and zypmite, a product based on gypsum. The company has production facilities in the port town of Paradeep, District Jagatsinghpur, Odisha, as well as at Zuari Nagar, Goa.
As per trendlyne data, Paradeep Phosphates stock price rose 27.19% and underperformed its sector by 50.79% in the past year.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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