This small-cap sin stock jumps more than 13% in trade; here is why

Stock market today: The domestic equity market got off to a flying start on Monday, April 1, 2024, the first day of the new financial year 2024–25, on the back of healthy buying in almost all sectors. Both Sensex and Nifty hit fresh record highs in the early trade today. The midcap and small-cap indices, too, traded with impressive gains. At the close, the S&P BSE MidCap index stood at 39,968.43, up 646.31 points, or 1.64 per cent, while the S&P BSE SmallCap index ended at 44,454.63, up 2.98 per cent or 1,288.29.

Amid this, one small-cap stock from the alcohol space that buzzed in today's trade was Globus Spirits. The stock jumped as much as 14.32 per cent to hit the day's high of Rs 760 on the BSE. The stock zoomed after the company, during the weekend, informed exchanges that on March 28, 2024, the company commenced commercial production of additional capacity at two of its existing units located at District East Singhbhum, Jharkhand, and at Panagarh, in West Bengal. Shares ended at Rs 752.65, up 13.21 per cent.

With this expansion, the capacity of the units is increased from 140 KLPD to 200 KLPD in Jharkhand and from 240 KLPD to 300 KLPD in West Bengal. The additional capacity will be used for various products, including ENA and ethanol. The expansion has been completed with a total investment of Rs 142 crore, financed largely through internal accruals and a term loan drawdown of Rs 14 crore, the company's press release added. 

Globus Spirits' share price

The stock of Globus Spirits has been listless at the bourses in the past 12 months. Shares of the company have slipped over 7.5 per cent during the period as compared to an over 29 per cent rise in the Nifty50 index.