Texmo Pipe carries good news

Texmo Pipe Products, which is in the manufacture of CPVC pipes, molded fittings of PVC and SWR, DWC pipes and drip inline is doing very well on the bourses today.

The stock is currently up 11% at Rs.13.20 and this is after rising almost 15% intra day. Its 52-week high stands at Rs.19.40.

The company has informed the exchanges on 26th that production is seeing a slowdown due to interruption of power supply though it was using DG set to keep it going. And then on 27th , it announced that that the interruption of power supply is over and the production had started in full capacity.

A few days ago, the Income Tax has conducted a search at its premises and continued with its enquiry proceedings. No news really came off this raid but the company said that it does not see an material impact on top line or bottom line of the company.

The company has ended Q2FY16 with a net loss of Rs.52 lakh compared to net profit of Rs.2 crore (QoQ). Net sales halved to Rs.42 crore from Rs.80 crore. Thus this could be just a momentum of the good news, otherwise, as of now there is no positive trigger for the stock.