Shares of Styrolutions soared to fresh highs. Know why

Shares of Styrolutions ABS (India) Ltd., a top chemicals maker, soared to fresh highs after the company reported a surge in quarterly profit on the back of lower costs.

Styrolutions ABS said its first quarter Net Profit rose 247 percent to 18.1 crore rupees compared with 5.21 crore rupees in the same quarter a year ago. Sales during April-June fell 1.5 percent to 313 crore rupees from 318 crore rupees in the year ago period.

Styrolutions ABS rose 8.4 percent, or 65.30 rupees, to 841.85 rupees, a record high on the National Stock Exchange, where 1 lakh shares were traded by 10:45 am compared with the 5-day average of 36,000 shares.

Styrolutions ABS's market capitalisation has jumped 55 percent in the past one year to 1,370 crore rupees as investors bought into chemical companies on the back of a fall in global crude oil prices, their main raw material source.

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