JBF Industries so close to new high

JBF Industries showed some activity today with the counter clocking volumes of 31,000 shares compared to 14,000 shares on a two-week average. From its closing yesterday at Rs.273.10, the stock hit an intra day high at Rs.282.95, just 5 paise lower than 52-week high of Rs.283 – which it had hit yesterday.

The good news in the stock is that its step subsidiary has commissioned its Purified Terephthalic Acid (PTA) plant at Mangalore SEZ, Karnataka.

The plant with capacity of 1.25 million tonnes per annum, uses British Petroleum's BP technology, known to be most cost effective and highly environment friendly. This is a backward integration plant, making JBF and its subsidiaries self sufficient in PTA requirements.

This is the single largest reactor train PTA plant and will have a positive impact on the margins.