Shares of Kohinoor Foods are soaring. Know why

Kohinoor Foods Ltd., a leading exporter of basmati rice, surged as quarterly profit rose even though sales dipped on the back of the fall in prices of the commodity.

Kohinoor said its first quarter net profit rose 18 percent to 5.25 crore rupees compared with 4.45 crore rupees in the same quarter a year ago. Sales during April-June slipped 13 percent to 284.1 crores versus 329 crores, the company said in a release to the exchanges.

Kohinoor rose 1.25 rupees, or 2.8 percent, to 45.35 rupees on the National Stock Exchange.

Kohinoor's market capitalisation has slipped 6 percent in one year to 155 crore rupees. Kohinoor trades at 0.42 times its book value of 105.9 rupees.

Image credit: Indiatimes