Everest Kanto hits a new high

The Supreme Court today stated that all Delhi taxis will have to replace diesel with CNG. This decision has boosted the stock price of cylinder maker, Everest Kanto Cylinder, which is a market leader in this segment. The market now expects the company to see a huge demand for CNG cylinders for automobiles, now in Delhi and might soon spread to other cities across India.

The stock price today hit a new 52-week high at Rs.15.45 and continues to remain over 16% higher at Rs.15.30 levels. Volumes have jumped through the roof – up from a two-week average of less than 1.5 lakh shares to over 9 lakh shares today alone.

On the financial front though, the company has been making losses consistently for over 5 quarters. Its huge operating costs and high interest burden have pushed the company into the red.