This recycling company shares hit new 52-week high amid capacity expansion news, stock up 90% in 3 months

Amid production capacity expansion news, the shares of Gravita India have surged almost 14 per cent and touched a new 52-week high of Rs 211.8 per share on the BSE intraday trade on Monday.

In its filing to exchanges, Gravita India said, “The company has increased the capacity of its existing recycling unit situated at Chittoor, Andhra Pradesh to 38,200 MTPA from 10,200 MTPA as of today.”

See Zee Business Live TV Streaming Below:

The production from said plant will cater to the needs of domestic as well as international customers, the company further said.

The investment in the said capacity expansion is almost Rs 1 crore which is invested from internal accruals of the company and all the equipment's are designed and developed in the companies in house project division by using its state-of-art technology, Gravita said in its filing.

The leading recycling company is expecting revenue of around Rs 150 crore in a year from additional capacity, it also mentioned in the release.

This plant has capitalized on the opportunity of domestic scrap available with the large telecom players, UPS OEM's, IT &ITES, Automobile workshops etc. in and around southern markets.

The company has contracts to collect their PAN India scrap in a cost-effective manner and by exporting the finished goods using the nearest Chennai Port thus saving the logistic cost. This plant will help the company to further, strengthen its presence in southern market and exports in South East Asian Markets.

The stock at around 02:30 pm was trading almost 10 per cent higher to Rs 204.3 per share on the BSE as compared to 0.33 per cent rise in the BSE Sensex. The stock was trading mute at around Rs 187 per share level till 12:45 pm, however picked up momentum after exchange filing.

The counter has soared over 90 per cent in the last three months and has recovered the losses seen during this month.