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Graphite India stock rises after approval for operation of Karnataka plant

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Graphite India stock rises after approval for operation of Karnataka plant

The stock rose up to 3.44% to 877.70 level in trade today compared to its previous close of 848.50 on the BSE.

The Graphite India stock rose in trade today after Karnataka State Pollution Control Board (KSPCB) renewed the consent to operate its electrode plant in Bengaluru for a period up to June 30, 2020 only with the condition to shift the unit from the existing location.

The stock rose up to 3.44% to 877.70 level in trade today compared to its previous close of 848.50 on the BSE.

The mid cap stock has gained after five days of consecutive fall. It opened with a gain of 3.12% at 875 level.

The stock has gained 30.43% during the last one year and risen 21.28% since the beginning of this year.

Five of seven brokerages rate the stock "buy" or 'outperform', one "hold" and one "sell", according to analysts' recommendations tracked by Reuters.

"The Company had vide letter dated 16.11.2018 informed KSPCB of the completion of all steps necessary (including the revamping work) in compliance of the observations and requested KSPCB to depute their officials to conduct an inspection of the plant to verify the compliances. Accordingly, the inspection of the plant was conducted on 23.11.2018 by KSPCB officials," the firm said in a communication to the bourses.

The company said KSPCB had given this clearance subject to a particular condition to shift the unit from the existing location. The company said this condition would not have adverse impact on the production capacity of the graphite electrode division in the medium term and long-term horizon.

Graphite India is engaged in the manufacturing graphite electrodes, graphite equipments, steel, glass reinforced plastic (GRP) pipes and tanks and generation of hydel power. The company operates through three segments: Graphite and carbon, steel and others.

Meanwhile, the Sensex and Nifty were trading in the red after traders booked profit in early trade today.

While the Sensex fell 121 points at 36,148, Nifty lost 41 points to 10,847. Top Sensex gainers were Sun Pharma (1.87%), PowerGrid (1.04%) and L&T (1%).

Edited by Aseem Thapliyal