Goa Carbons Ltd (BSE: 509567, NSE: GOACARBON) has hit 52-week high of 1116.40 on improved demand prospects for calcined petroleum coke (CPC) from steel and aluminium industry having been trading at 883 levels in the beginning of the year.
In Q3, CPC prices have risen from Rs 24500 per ton to Rs 29500 and increase in production from 61,000 tons to 63,000 tons in Q3. The company has been able to pass on the price increases to customers and reduced finance costs. The company is running near 100% capacity and 50,000 tons worth of orders till February.
CPC is a raw material used in the production of graphite electrode for use in Electric Arc Furnace (EAF) based steel plants. With the closure of steel units and electrode units in China due to pollution concerns, the worldwide shortage of the graphite electrodes had increased in recent times.
Shrinivas V Dempo, Chairman of Goa Carbons had forecast last year that CPC demand is expected to go up to 4 million tons in 2020 from 2.8 mn tons in 2016. Goa Carbons had produced 1,64,323 MT of CPC in 2016-17 and sold 159,579 MT.
The company had reported a net profit of Rs 9.42 cr on a sales turnover of Rs 300 cr. The company has reported a net profit of Rs 22.50 cr in December quarter and sales of Rs 186.60 cr.
On technical charts, RSI of 82.85 denotes bullish overbought position while MACD has witnessed a bullish crossover and ADX of 26.99 denotes range bound trading