Jayant Agro advances on forming JV with Japanese firms

Jayant Agro Organics gained 3.8% to Rs 80 at 10:33 IST on BSE, after the company entered into a joint venture agreement with two Japanese firms to focus on manufacturing castor oil based polyols.

The company made this announcement after market hours on Thursday, 29 August 2013.

Meanwhile, the BSE Sensex was up 144.43 points, or 0.78% at 18,545.47

On BSE, 1,081 shares were traded in the counter as against an average daily volume of 1,296 shares in the past one quarter.

The stock hit a high of Rs 82 and a low of Rs 78 so far during the day. The stock had hit 52-week high of Rs 156.95 on 11 October 2012 and a 52-week low of Rs 70 on 8 August 2013.

The small-cap stock had underperformed the market over the past one month till 29 August 2013, falling 10.35% compared with the Sensex's 6.08% fall. The scrip had also underperformed the market in past one quarter, sliding 17.11% as against Sensex's 8.67% fall.

The company has an equity capital of Rs 7.50 crore. Face value per share is Rs 5.

Jayant Agro Organics and Mitsui Chemicals, Inc. Japan and Itoh Oil Chemicals Co., Japan have together entered into a joint venture agreement for investing in the equity shares of Vithal Castor Polyols in the ratio 50:40:10 respectively. The joint venture will be focused on manufacturing castor oil based polyols through Vithal Castor Polyol.

Mitsui Chemicals' business portfolio includes petrochemicals, basic chemicals and polyurethanes, functional polymers materials, functional chemicals, and films and sheets.

Itoh Oil Chemicals Co is a leading castor oil speciality manufacturing company in jaoan with products ranging from castor oil, its derivatives, and various speciality chemicals derived from castor oil.

Jayant Agro Organics' consolidated net profit fell 55.7% to Rs 6.02 crore on 19.3% fall in total income to Rs 373.11 crore in Q1 June 2013 over Q1 June 2012.

Jayant Agro Organics is an emerging global oleochemical company with leadership in the castor-based specialty chemicals industry.

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