Graphite India Shares Jump 5% After Tax Clarification

Graphite India shares surged nearly 5% to Rs 687.85 on Friday, defying a significant market downturn. This unexpected rally occurred as the broader stock market experienced a considerable crash.

The graphite electrode manufacturer’s stock saw an uptick following the company’s disclosure of an order from the Additional Commissioner (Appeals), State Tax, LTU, concerning an alleged ‘Excess availment of Input Credit’.

Graphite India swiftly clarified that this demand would not materially impact its financial performance. The company asserted it had utilized only eligible Input Tax Credit (ITC) and possessed all necessary valid documents, announcing its intention to review the order and file an appeal.

Key Financial Figures

The tax demand detailed specific amounts:

Tax (IGST+CGST+SGST): Rs 35,98,869

Interest (IGST+CGST+SGST): Rs 35,52,232

Penalty (IGST+CGST+SGST): Rs 3,59,8

Following these developments, Graphite India’s market capitalization increased to Rs 13,236 crore. A total of 1.80 lakh shares changed hands, generating a turnover of Rs 12.24 crore.

Graphite India’s operations span the manufacturing of graphite electrodes, graphite equipment, steel, and glass-reinforced plastic (GRP) pipes and tanks. The company also generates hydel power, structured across its Graphite and carbon, steel, and others segments.

Broader Market Dynamics

The wider market faced a downturn, influenced by the ongoing US-Iran conflict, which escalated crude oil prices. Both nations asserted control over the Strait of Hormuz, prompting ships to seek alternative routes to mitigate potential losses.

The Sensex plummeted 917 points to 75,474. The Nifty also fell 263 points to 23,606.

Despite the significant pressures on the broader indices, Graphite India demonstrated resilience, driven by its clarification on the tax demand. The company prepares to appeal the order, maintaining its stance on eligible ITC utilization.