Indo Borax & Chemicals gains after board approves increase in production capacity

Indo Borax & Chemicals rose 3.29% to Rs 232.50 at 12:45 IST on BSE after the company said that its board of directors at its meeting held on 27 December 2014 has approved to increase the existing production capacity of boron products.

The company made announcement before market hours today, 29 December 2014.

Meanwhile, the S&P BSE Sensex was up 248.63 points or 0.92% at 27,492.15.

On BSE, so far 2,969 shares were traded in the counter as against average daily volume of 3,711 shares in the past one quarter.

The stock hit a high of Rs 234 and a low of Rs 225.80 so far during the day. The stock hit a record high of Rs 320.90 on 16 September 2014. The stock hit a 52-week low of Rs 83 on 17 January 2014.

The stock had underperformed the market over the past one month till 26 December 2014, declining 10.5% compared with Sensex's 4.03% fall. The scrip had also underperformed the market in past one quarter, falling 15.52% as against Sensex's 2.31% rise.

The small-cap chemical manufacturer has equity capital of Rs 3.21 crore. Face value per share is Rs 10.

Indo Borax & Chemicals said that the board of directors of the company at its meeting held on 27 December 2014 has approved to increase the existing production capacity of boron products (Boric Acid/Borax) by 5,600 metric tonne per annum (MT pa) at plant at Pithampur, Madhya Pradesh. With this expansion, installed production capacity will increase by 38.89% from existing 14,400 MT pa to 20,000 MT pa. The total cost of project is estimated at Rs 7 crore. The cost will be financed through internal accruals.

Indo Borax & Chemicals' net profit rose 27.6% to Rs 3.19 crore on 20.5% rise in total income to Rs 18.94 crore in Q2 September 2014 over Q2September 2013.

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