JB Chemicals hits new high

In an otherwise dull market, JB Chemicals seems to be doing pretty well for itself. The stock opened over Rs.14 higher , hitting a 52-week high at Rs.200, with volumes surging over 6 times.

This sudden spike of interest in the stock is after the company reported a set of very good numbers for Q1FY15, Its net profit for the quarter rose by a good 56% (YoY) at Rs.32 crore on a 12% rise in net sales at Rs.257 crore. This spurt up in bottomline is on account of the commencement of sales and distribution in Russia and CIS countries by the wholly owned subsidiary during the quarter. The market is also enthused by the fact that the company, using only its internal accruals plans to invest Rs.140 crore for a new capacity and other related infra, over the next 12-18 months. At a time when big companies are sitting on idle, big piles of cash, this company using it productively is a big plus in favor of JB Chemicals.