Agri-Tech (India), earlier a part of Nath Seeds, is into ‘horticulture business’, as per its latest annual report.
However, this micro-cap stock has not generated any significant revenue over the past few years. For the year ended June 2016, the Aurangabad-based company reported revenues of just Rs7 lakh compared to sales of Rs8 lakh reported a year ago. It reported a net loss in eight of the past 10 quarters. Strangely, a few months ago, a strong interest developed in the stock, despite its poor financials. From just about 1-10 shares traded a day over the past year, in July and August 2016, the number of shares traded averaged about 100 per day. The result?
In just over a month, the stock price shot up 347%, from Rs10.39 at the beginning of July 2016 to a peak of Rs46.45 on 18 August 2016. The stock consistently hit the upper circuit limit of 5% on the BSE. The euphoria did not last long as in all ‘pump and dump’ operations; the stock price soon crashed. Even though the stock is now down 40% from the peak, to Rs28 on 22 September 2016, it is still up 483% from a low of Rs4.8 on 28 April 2015.