Home / Financial News / Nilkamal hits record high; stock soars over 50% in one month

Nilkamal hits record high; stock soars over 50% in one month

Shares of plastic products maker Nilkamal has soared 16% to Rs 499, also its record high on the National Stock Exchange (NSE), on back of heavy volumes.

The trading volumes on the counter more-than-doubled with a combined around 850,000 shares representing nearly 6% of total equity of Nilkamal have changed hands till 1334 hours on NSE and BSE.

In past one month, the stock rallied 51% from Rs 331 on November 10, as compared to a 0.08% fall in the benchmark index CNX Nifty.

According analyst at Nirmal Bang, the fall in Indian crude oil basket price will boost gross margin of the company.

With a lower margin structure, percentage increase in net profit because of a sharp fall in crude oil prices will be very high for the company, analyst said in a report dated December 4, 2014.

Raw materials costs accounted for 55.5% of the company’s FY14 sales. Of this, costs of polyethylene (52.9% of raw material consumption) and polypropylene (34.7%) are linked to crude oil prices, added report.
 

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