Prima Plastics soars 15% on completion of expansion project

5 January 2017

Shares of Prima Plastics shot up over 15 per cent in trade on Thursday after the company informed stock bourses that it has completed the recent expansion project undertaken to enhance production capacity.

In a filing to BSE, the company said that its subsidiary at Camerron, West Africa, Prima Dee-Lite Plastics sarl, has increased capacity to 8,500 tonne per annum from the existing capacity of 4,500 tonne per annum.

“We are pleased to announce that the commercial production at the plant has commenced on January 03,” the company said.

In addition, the company said it received a dividend of Rs 3.52 crore as dividend from the join venture company on December 21, 2016.

Following the development, the stock shot up 15.6 per cent to hit a high of Rs 268.80 on BSE. At the prevailing price, the stock is trading at 27.42 times its trailing 12-month earnings per share (EPS) and 4.24 times its book value.