Smallcap stock skyrockets 18% after subsidiary begins production of bottle grade PET resins

Indo Rama Synthetics’ shares rose by 18% to Rs 50.4 after its subsidiary firm started commercial production of “Bottle grade PET resins” at its newly-constructed Solid-State Polymerisation Plant. However, Indo Rama Synthetics’ stock has declined nearly 19% on a year-to-date basis and over 30% in the last year. In Q4 FY23, the company’s net profit was Rs 1.62 crore, down 98% YoY, and net sales stood at Rs 880 crore, down 30%. The stock is trading above six out of eight SMAs and below the 150-day and 200-day moving averages. The day RSI (14) is at 46.8 and MACD is strong bearish.