Tata Sponge shines after getting approval for hiking production capacity

Tata Sponge Iron rose 1.04% to Rs 866.40 at 10:40 IST on BSE after the company received environment clearance for enhancement of production in the existing facility at Odisha.

The announcement was made after market hours yesterday, 8 May 2017.

Meanwhile, the S&P BSE Sensex was up 18.66 points or 0.06% at 29,944.81. The S&P BSE Small-Cap index was up 71.05 points or 0.46% at 15,533.63.

On the BSE, 34,000 shares were traded on the counter so far as against the average daily volumes of 92,054 shares in the past one quarter. The stock hit a high of Rs 878 and a low of Rs 864.25 so far during the day. The stock had hit a 52-week high of Rs 900 on 11 April 2017 and a 52-week low of Rs 474.95 on 9 November 2016.

The stock had outperformed the market over the past one month till 8 May 2017, rising 17.63% compared with 0.74% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 38.83% as against Sensex's 5.61% rise.

The small-cap company has equity capital of Rs 15.40 crore. Face value per share is Rs 10.

Tata Sponge Iron received environment clearance from Ministry of Environment, Forest & Climate Change, Government of India, for enhancement of DRI production by 35,000 TPA i.e. from 3,90,000 TPA to 4,25,000 TPA in the existing facility located at Bileipada, district Keonjhat, Odisha.

Tata Sponge Iron's consolidated net profit surged 62.1% to Rs 21.20 crore on 19.1% growth in net sales to Rs 167.17 crore in Q4 March 2017 over Q4 March 2016.

Tata Sponge Iron is a sponge iron manufacturer. Tata Steel is the promoter of Tata Sponge Iron. Tata Steel owned 54.5% stake in the company end March 2017.

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