Maithan Alloys in the red

Maithan Alloys slipped down to an intra day low at Rs.280, down over 13%. It has a 20% circuit and the lower circuit will get triggered at Rs.258.25.

The reason for this pessimism on its counter is its late evening announcement yesterday. The company said that  due to adverse market conditions, the production at the Kalyaneshwari Plant has been cut by 15% with effect from October 31, 2016.

Between July and October 2016, the cost of Imported Manganese Ore, which accounts for the major cost of production has increased by 200%, Imported Coke by 80%, whereas the sales price of Silico Manganese, the finished product, has increased only by 30%.

The production at the plant is likely to be cut further in the near future and thus the stock price has been hammered down today.

The company will be declaring its Q2 performance on 10th November.