Surya Roshni surges 7% as firm commences production at Hindupur plant

NEW DELHI: Shares of Surya Roshni climbed over 7 per cent in Wednesday’s trade after the company told stock exchanges that commercial production at its new steel pipe plant in Andhra Pradesh had commenced.

Following the development, the stock rose 7.07 per cent to hit a high of Rs 198.35 on BSE. At the prevailing price, the stock is trading at 13.27 times its trailing 12-month earnings per share (EPS) and 1.16 times book value.

With the start of operations at Hindupur plant, the company will achieve savings in logistic cost and further leveraging its presence in the premium market of South India resulting in creation of a larger and stronger steel pipes business with economies of scale.

“Being a plant set-up at notified backward area in Andhra Pradesh, the company is eligible for deduction under section 32AC & 32AD of the Income Tax Act, 1961,” the company informed BSE.