Ruchi Soya jumps on palm oil pact with Arunachal Pradesh govt

Ruchi Soya Industries surged 7.97% to Rs 23.70 at 13:46 IST on BSE after the company said it signed a memorandum of understanding with the Arunachal Pradesh state government to boost palm oil production.

The announcement was made during market hours today, 6 October 2016.

Meanwhile, the S&P BSE Sensex was down 40.50 points or 0.14% at 28,180.48.

On BSE, so far 3.48 lakh shares were traded in the counter as against average daily volume of 1.07 lakh shares in the past one quarter. The stock hit a high of Rs 24.55 and a low of Rs 22 so far during the day. The stock had hit a 52-week high of Rs 34.50 on 9 October 2015. The stock had hit a 52-week low of Rs 17.75 on 25 May 2016. The stock had outperformed the market over the past one month till 5 October 2016, advancing 8.4% compared with 1.09% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, sliding 2.01% as against Sensex's 3.88% rise.

The small-cap company has equity capital of Rs 66.82 crore. Face value per share is Rs 2.

Ruchi Soya Industries recently signed a memorandum of understanding (MOU) with the Arunachal Pradesh state government to boost palm oil production through development of quality palm plantations and human capacity building. With this agreement, Ruchi Soya now has obtained permission for oil palm development in 45,000 hectares, covering five districts in Arunachal Pradesh.

Ruchi Soya Industries' net profit fell 98.8% to Rs 1.03 crore on 12.9% decline in net sales to Rs 4951.99 crore in Q1 June 2016 over Q1 June 2015.

Ruchi Soya is one of India's leading cooking oil and soy food maker and marketer.

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