Shares of this Penny stock jumped up to 3 percent in Tuesday’s trading session after the company announced a 10 MegaWatt (MW) solar power plant project in Gujarat. In the past six months, the company’s shares have spiked approximately 50 percent from Rs 25 to the current price level.
With a market capitalization of Rs 175.58 crores, the stocks of Astron Paper & Board Mill Limited opened their trading hour on Tuesday at Rs 37.63 and currently trade at Rs 37.76. The scrip witnessed an intra-day high of Rs 38.50 indicating a gain of around 3.20 percent compared to the previous close of Rs 37.30 apiece.
The share price movements today were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced that the company is investing Rs 45 crores in the development of a state-of-the-art ‘10MW’ solar power plant for captive power consumption.
Moreover, the company has also executed a Memorandum of Understanding (MoU) with the Government of Gujarat for the solar Project of 10 Mega Watt in line with a significant step towards enhancing the ease of doing business and promoting economic growth.
Key Highlights of the Project include a total capacity of 10 megawatts, generating 1.80 crore units of energy to power annually. In addition, the plant will be located in the Gla Village, taking advantage of the abundant sunlight in the region to maximize energy production.
The Project is expected to start the installation of the solar plant by the end of February 2024 and completion is expected by Q3FY24-25.
Having a glance at the financials of the company, the prime indicators of business such as operating revenues and after-tax profits showed positive movements.
The former increased from Rs 78.38 crores during Q1FY23-24 to Rs 80.67 crores during Q2FY23-24, and the latter, keeping the timeframe the same, trimmed its net losses from Rs 1.89 crores to Rs 1.66 crores.
Incorporated in 2010, Astron Paper & Board Mill Limited is engaged in the business of manufacturing and selling a wide range of kraft papers from waste papers for the packaging
industry in India. In addition, the company offers high-ring crust test papers, test liners, and corrugated medium papers.
Written by Amit Madnani
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