Shalimar Paints jumps on bargain hunting

Shalimar Paints rose 4.20% to Rs 126.50 at 13:46 IST on BSE on bargain hunting after a sharp sell off in the stock yesterday, 21 November 2016, triggered by news of fire accident in one of the company's plants in Nasik on 19 November 2016.

Meanwhile, the BSE Sensex was up 57.51 points, or 0.22%, to 25,822.65.

On BSE, so far 23,000 shares were traded in the counter, compared with average daily volume of 47,645 shares in the past one quarter. The stock hit a high of Rs 129 and a low of Rs 120.20 so far during the day. The stock hit a record high of Rs 223.60 on 23 August 2016. The stock hit a 52-week low of Rs 88.70 on 12 February 2016. The stock had underperformed the market over the past 30 days till 21 November 2016, falling 38.50% compared with the 8.23% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 41.07% as against Sensex's 7.95% decline.

The small-cap company has equity capital of Rs 3.79 crore. Face value per share is Rs 2.

Shalimar Paints announced during market hours yesterday, 21 November 2016, that there has been a fire accident in one of the plants of the company at Gonde Dumala village, Igatpuri, Nasik on 19 November 2016. There has been no loss or injury to human life. The company is in the process of ascertaining the actual loss caused by the fire and also is in process of informing the same to the insurance company, Shalimar Paints said. The company is taking adequate steps to ensure re-functioning of the plant at the earliest, it said.

Following the announcement, shares of Shalimar Paints slumped 15.02% to Rs 121.40 yesterday, 21 November 2016.

Shalimar Paints' net profit rose 95.97% to Rs 2.43 crore on 0.11% increase in total income to Rs 103.15 crore in Q2 September 2016 over Q2 September 2015.

Shalimar Paints is India's iconic paint-maker. Established in 1902, the country's first paint company is a pioneer in the field of paints and coatings.

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