Kanoria Chemicals shares up 5% on new plant announcement

Kanoria Chemicals shares opened 6.3 percent higher on February 24 following the company’s announcement of setting up a new formaldehyde plant with 300 TPD (tonnes per day) capacity.

The plant would be set up at the existing facility at GIDC, Ankleshwar in Gujarat and would be with the latest metal oxide-based technology, it said.

New capacity addition is expected to cater to the growing demand in the region as well as the export markets for sectors such as engineering wood, textiles, agrochemicals, and pharmaceuticals.

Ranjeet Singh, CEO, chemicals business, said in a filing that the investment was in line with the company’s ‘Vision-2030’.

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In Q3FY23, the company’s revenue from operations increased 19 percent YoY to Rs 385 crore. It stood at Rs 362 crore in September 2022 quarter.

The company’s net loss narrowed to Rs 1.3 crore from Rs 14 crore reported in the year-ago period. Net loss in Q2FY23 stood at Rs 11 crore.

The company’s price has risen around 2 percent in the last 1 year while it has fallen 8 percent in the last 1 month.

At 10.11 am, Kanoria Chemicals was trading 5.26 percent higher on the National Stock Exchange at Rs 128.