Exxaro Tiles shares rally over 10% - Here's why

Shares of Exxaro Tiles on Friday jumped over 10 per cent and went on to hit an intraday high of Rs 149.45 on the National Stock Exchange (NSE). It fell short of just Re 0.55 to touch the 52-week high figure. The scrip opened at Rs 135.50 on Friday. Earlier on Thursday, the scrip had settled at Rs 130.45. 

Shares of Exxaro Tiles rose during the early trading session as the company announced to expand its footprint and open a new showroom in Mumbai, which will be open for operations later this month.

The company in an exchange filing said that it looks to increase exports and launch a new showroom in Mumbai to cash in on the opportunity amid the rise in demand for premium products.

The stock was held in green around noon at Rs 146. Also, a rise in volume was seen on the counter as 29.32 lakh shares changed hands. 

"Capitalizing on premium products continues to be one of our key strategic priorities. The company has secured a new order worth Rs 400 million from  GVT slabs," it said in a statement.

The scrip has made investors wealthier by around 24 per cent in the last one month. So far this year, it has given a positive return of over 24 per cent.

“Product innovation and Improvement continue to remain key focus areas. The premium products mix yields higher per unit value on margins," Mukesh Patel, chairman and MD, said.

The small-cap company has a market capitalisation of Rs 650.54 crore.

In the first quarter of the current financial year, the company reported net sales at Rs 74.13 crore, up over 9 per cent from Rs. 67.59 crore that it closed in the same quarter of the previous financial year.

Exxaro Tiles is mainly engaged in the manufacturing and marketing of vitrified tiles that are primarily used as flooring solutions.