South India Paper revitalizes after settlement with workers

South India Paper Mills was locked at 5% upper circuit at Rs 100.80 at 9:35 IST on BSE after the company said that a long term settlement has been reached between the management and the worker's union including wage settlement.

The announcement was made after market hours yesterday, 20 July 2017.

Meanwhile, the S&P BSE Sensex was up 108.22 points, or 0.34%, to 32,012.62. The S&P BSE Small-Cap index was up 55.17 points, or 0.34%, to 16,055.05.

On the BSE, 2,502 shares were traded in the counter so far, compared with average daily volume of 4,301 shares in the past one quarter. The stock was locked at a high of Rs 100.80 in intraday trade. The stock had hit a low of Rs 100 so far during the day. The stock had hit a record high of Rs 165.60 on 28 July 2016. The stock had hit a 52-week low of Rs 90.25 on 28 June 2017.

The stock had underperformed the market over the past one month till 20 July 2017, falling 4% compared with Sensex's 1.94% rise. The scrip had also underperformed the market in past one quarter, dropping 19.16% as against Sensex's 8.44% rise. The scrip had, however, outperformed the market in past one year, declining 32.28% as against Sensex's 14.29% rise.

The small-cap company has equity capital of Rs 15 crore. Face value per share is Rs 10.

South India Paper Mills' worker's union have agreed to call off the strike at the company's paper mill at Chikkayanachatra, Nanjangud, before the Labour Commissioner, Govt of Karnataka, Bangalore.

On 20 March 2017, the company had informed about the commencement of indefinite strike at the paper mill from 20 March 2017.

South India Paper Mills' net profit fell 57.6% to Rs 2.36 crore on 17% drop in net sales to Rs 43.69 crore in Q4 March 2017 over Q4 March 2016.

South India Paper Mills is a paper manufacturing company.

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