Why is Pudumjee Industries down 10% in a flattish market?

3P Land Holding's intraday high in the previous session was the closest it has ever come to its record high of Rs 71.66, hit way back in early January, 2008.

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26 Aug, 2025 12:21

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Shares of 3P Land Holdings, owned by Pudumjee Industries were trading against the tide, plunging to Rs 60.3, its 10 percent lower circuit limit, at a time when the overall market remained flat. The reason? Sharp profit booking.

The stock soared to an intraday high of Rs 66.70 in the previous session, the closest it has ever come to its record high of Rs 71.66 that it touched way back in early January, 2008. The stock has also delivered gains of 123 percent in the year so far, giving investors all the more chance to take some profits home.

The rush to book partial profits off the stock's recent upsurge was also evident in the sharp spike in trading volumes in the counter. As much as six lakh shares changed hands on the exchanges as yet, far higher than the one-month daily traded average of 97,000 shares.

The microcap company, which is involved in the paper and paper products industry, has been enjoying the strong growth prospects for the sector. Tailwinds like capacity expansion across the sector, reduction GST tax on paper products and price hikes are expected to chart out a strong growth trajectory for paper makers.

Additionally, the paper industry's performance closely follows key economic trends, such as literacy rates and education spending, both of which are showing promising signs, especially with support from India's large youth population.

Meanwhile, a shift in packaging from plastic towards more sustainable products is another factor that is bolstering sentiment for the paper industry, increasing the scope of demand for their products.

This growth is expected to stem from the recent expansion in production capacity, enabling paper companies to meet the rising demand for their products. On the back of these positives, the growth prospects for 3P Land Holdings seems to be bright.

The company also recorded a more than threefold jump in its Q2 net profit at Rs 96 lakh, the highest net profit in five quarters. Revenue also nearly doubled on year to Rs 1.74 crore in the September quarter.