Top Trending Stock: A government decision and this company’s stock jumped 11 percent – aksh optifibre soars over 11 percent as anti-dumping duty boosts prospects
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Axis Optifiber Limited (AOL) was established in 1986 and is involved in manufacturing and sales of optical fiber, cables and related products. The company serves domestic and international markets. The company provides e-governance services in Rajasthan which include smart city solutions. Priced below Rs 15, Aksh Optifiber presents an affordable investment opportunity for investors interested in the telecom sector. Its low prices may attract investors who are looking to diversify their portfolios or capitalize on opportunities at a reasonable cost. Sector wise, in order to provide relief to the domestic optical fiber industry from the harmful effects of low priced and poor quality imports, the Ministry of Finance has imposed a certain antitrust duty on imports of certain types of optical fibers from China, South Korea and Indonesia. – Dumping duty is applied.
So, now the question is what is anti-dumping?
It’s like setting fair rules in a game. When products of other countries are sold in our country at prices much less than what it costs to make, it can harm our industries. Therefore, to give a level playing field to its companies, the government can impose additional duty on those products so that domestic companies can be saved. Anti-dumping duty acts as a shield for our companies.
Company’s performance in Q1FY24
The company’s revenue declined in the first quarter of the financial year 2023-24. 58.69 crore, a decline of 26.57% compared to the corresponding quarter of the previous year. Similarly, the company incurred a loss of Rs 1.80 crore in the June quarter as against a profit of Rs 1.61 crore in the same quarter last year. The optical fiber industry has heaved a sigh of relief with this step of the government. One can expect further expansion and growth in this sector.
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