Shares of Kiri Industries Ltd rose sharply in Thursday’s trade to hit their upper price band amid heavy volumes. The stock jumped 10 per cent to hit a day high of Rs 305.40 over its previous close of Rs 277.65. Around 13,000 shares changed hands today on BSE, which was more than twice compared to the two-week average volume of 6,293 shares. Turnover on the counter stood at Rs 36.51 lakh, commanding a market capitalisation (m-cap) of Rs 1,583.02 crore. There were 28,892 buy orders today against sell orders of nil shares.
The company, in an exchange filing today, said, “The Singapore International Commercial Court (SICC) would deliver the judgement on final valuation of company’s stake in DyStar Global Holdings (Singapore) tomorrow, i.e., March 3, 2023.”
The development came after the SICC, Kiri said, had delivered a judgement relating to the valuation of its stake in DyStar last month.
On February 8, Kiri said, “The SICC has decided computation base of 53,550 tonnes annually to be considered for computation of patent licence fees. This decision will substantially increase the amount of patent license fees to be added in the valuation of company’s stake in DyStar.”
The company also mentioned, “The SICC further directed both the parties to submit their revised agreed calculation within 21 days for the notional licence fee based on 53,550 tonnes for the Related Products; and the valuation of company’s shareholding in Dystar based on the notional license fee, after adjusting for the fact that discount for lack of marketability is not a relevant adjustment as found by the court of appeal.”
On the technical front, AR Ramachandran from Tips2trades said, “Kiri Industries looks very bullish on the daily charts and a close above Rs 306 resistance level could lead to targets of Rs 336-343 in the near term. Support will be at Rs 278.”
The stock was last seen trading higher than 5-day and 20-day moving averages but lower than 50-day, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 47.16. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a negative price-to-equity (P/E) ratio of 12.96.
The scrip has a one-year beta of 0.83, indicating low volatility.
Kiri Industries is one of the largest manufacturers and exporters of a wide range of dyes, intermediates and chemicals from India.
Meanwhile, Indian equity benchmarks fell sharply in late deals today, dragged by technology, consumer goods and automobile stocks.
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