Omkar Speciality declines after yesterday's surge

Omkar Speciality Chemicals lost 3.19% to Rs 83.40 at 15:15 IST on BSE on profit booking after yesterday's rally triggered by the company securing patent for process for terminal Dihaloalkane.

Meanwhile, the S&P BSE Sensex was down 102.28 points or 0.32% at 31,569.43. The S&P BSE Small-Cap index advanced 122.36 points or 0.75% at 16,442.59.

On the BSE, 86,000 shares were traded on the counter so far as against the average daily volumes of 92,405 shares in the past one quarter. The stock had hit a high of Rs 88 and a low of Rs 83.20 so far during the day. The stock had hit a 52-week high of Rs 120.05 on 14 July 2017 and a 52-week low of Rs 63.13 on 9 November 2016.

The stock had underperformed the market over the past one month till 4 October 2017, sliding 3.31% compared with the Sensex's 0.1% fall. The stock had also underperformed the market over the past one quarter, declining 0.58% as against the Sensex's 1.48% rise. The scrip had also underperformed the market over the past one year, gaining 1.26% as against the Sensex's 11.78% rise.

The small-cap company has equity capital of Rs 20.58 crore. Face value per share is Rs 10.

Shares of Omkar Speciality Chemicals had surged 13.8% in a single trading session to settle at Rs 86.15 yesterday, 4 October 2017, after the company announced during trading hours on that day that it was granted patent for process for terminal Dihaloalkane.

Omkar Speciality Chemicals announced that Intellectual Property India, The Government of India Patent Office, has granted a patent to the company for 'process for terminal Dihaloalkane' for 20 years from 8 June 2012 in accordance with the provisions of the Patents Act, 1970.

It awarded the legal monopoly to the company for manufacturing halogenated alkane compounds and especially the company's valuable products like diiodomethane and chloroiodomethane. This patented technology gives high yield and great purity product output thereby yielding excellent quality products, the company said in a statement.

This is the third patent grant in a span of about one year and with this, the total number of patents granted to the company in last three years stands at 5.

Net profit of Omkar Speciality Chemicals rose 37.6% to Rs 7.65 crore on 6.7% rise in net sales to Rs 85.95 crore in Q1 June 2017 over Q1 June 2016.

Omkar Speciality Chemicals is mainly engaged in the manufacture and sale of specialty chemicals and intermediates for chemical and allied industries.

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