Sumeet Inds on the go today!

Sumeet Industries is on the go today! Showing very good volumes for the past few days, the stock is up over 13.5% at Rs.20.95, with a 52-week high at Rs.24.

The sudden spike in interest on this counter is a reaction to the company announcing that it is planning to set up a 10.5 megawatts (MW) wind power plants – 5 units of 2.1 MW each. The capital cost is estimated at Rs.77.51 crore and the market is probably more happy about the fact that IDBI Bank has sanctioned Rs.57.75 crore loan.

The company has said that this plant will go on stream within six months and this is expected to boost the company’s profitability in the next fiscal as the coming of this plant will help cut down fuel/power cost and thus add on to the margins. The company, some six years ahead, will receive 2.70 units of electricity at a cost of Rs.1.30 paise/unit.