The Hindu Business Line : Suryajyoti Spinning shining at bourses

The stock, after touching the session's peak at Rs 47.45 on Thursday, closed at Rs 46.45 against the previous close of Rs 46.60. The stock has gained 15.40 per cent from a level Rs 40.25 recorded a month ago. In the past one week, it has gained around 2.31 per cent. The counter's traded volumes on Thursday were 1.33 lakh shares against the daily average recorded on the bourse of around 4.44 lakh shares in the last two weeks.

According to analysts, fresh investments in increasing spinning capacity, particularly cotton yarn spinning, better efficiency, margins and savings on account of interest and power costs have raised hopes for higher profitability and sales during the current year.

The company, according to the management, is converting blended yarn spindles into cotton yarn spindles to take advantage of better price and margins. It has 25,000 spindles dedicated towards blended yarn, while 15,120 spindles capacity is for cotton yarn.

For the conversion and capacity expansion , the company has raised funds through borrowing of Rs 10 crore from the Textiles Upgradation Fund and Rs 6 crore through allotment of 20 lakh shares to the promoters at Rs 30 each. In 2004-05, it has converted 7,056 such spindles to cotton yarn producing ones. During the current fiscal, it plans to carry on with such conversions.

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