Stock Manipulation
Stock manipulation: Kingfa Science & Technology India
Earlier known as Hydro S&S Industries, Kingfa Science & Technology India (KSTI) manufactures modified plastics and engineering plastics. In May 2013, China’s plastic manufacturer Kingfa Sci & Tech Co picked up 66.5% stake in KSTI at 2.5 times the market price. The parent company currently holds 75% shares of KSTI. For the year ended March 2016, KSTI reported a revenue of Rs314 crore, up 43% from Rs219 crore reported for the same period a year ago. But KSTI has struggled to generate much profit. For FY15-16, its net profit amounted to a mere Rs10.80 crore. However, over the past three years, the stock moved up a humongous 7850% or nearly 79 times, from a low of Rs11.77 on 25 April 2013 to Rs935 on 15 July 2016. The current price is an extraordinary 88 times its earnings per share (trailing 12 months). With borrowings of Rs75 crore on 31 March 2015, the debt:equity ratio is as high as 9.23.
 
Will the Securities and Exchange Board of India (SEBI) investigate whether the upmove was due to the optimism of investors or is someone trying to rake up the price artificially? 

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COMMENTS

Mohan Sivanand

10 months ago

In a nation where such manipulation is quite common, it is only good journalism to question anything that looks suspicious. While I defend the right of some of the other readers here to question this story, I can only see Moneylife bravely doing its duty by warning investors to be careful. And that is one big reason why I read Moneylife. Recently I have seen another stock, Shriram Pistons, racing up. But you and I can't buy it and on some days as many as just 15 stocks were traded. That has increased now to a few hundred. It hits a new 52-week high every day. Could there be a small group of sellers and buyers playing with this stock?

SATINDER GOEL

10 months ago

Please provide some evidence why you think price is manipulated. When stocks like Flipkart can command valuation of 200 USD per share...why KINGFA with innovation and latest state of the art technology offerings can not command a price of 20 USD odd . Why can not your investigative journalists find out if anything wrong with the company before you rely on SEBI ?

REPLY

Kamal Babaria

In Reply to SATINDER GOEL 10 months ago

i agree to your words mr goel.

Kamal Babaria

10 months ago

kingfa is the subsidiary of world leader kingfa china.earlier hydro s &s was not doing well and hence the price was abyssmal.kingfa took over this company and began the operation under new name .the debt as on date is zero.kingfa has planned 500 cr capex expansion for india project.the product usage consumption of kingfa is abyssmally low as compard to other countries and has the potential for huge growth.
the mcap @1000 cr with [email protected] and ever increasing ,doesnt seem to be a price rigging.the potential of future growth itself may demand such premium.

Abhishek Kedia

10 months ago

I don't know whether SEBI has a dedicated team for such activities, but surely some equity investors on twitter mention about them and on there blog, they have more then 10k followers, SEBI should track there buy/sell activity two and punish on the same. Investors or retail investors just go by herd mentality and then stuck in high price which never comes again and they loose their hard earned money.

Sandeep Das

10 months ago

Ya I agree with Dulip. Stock turning out to be 88 bagger does not necessarily mean its manipulated. The debt of 75 crore reduced substantially as well. Right now the stock is expensive but valuations are also catching up and earnings will do the same as well. Also there is a huge expansion plan and the untapped market in India for its core product is huge and all this is factored in the current price of Kingfa

Sandeep Das

10 months ago

Ya I agree with Dulip. Stock turning out to be 88 bagger does not necessarily mean its manipulated. The debt of 75 crore reduced substantially as well. Right now the stock is expensive but valuations are also catching up and earnings will do the same as well. Also there is a huge expansion plan and the untapped market in India for its core product is huge and all this is factored in the current price of Kingfa

Sandeep Das

10 months ago

Ya I agree with Dulip. Stock turning out to be 88 bagger does not necessarily mean its manipulated. The debt of 75 crore reduced substantially as well. Right now the stock is expensive but valuations are also catching up and earnings will do the same as well. Also there is a huge expansion plan and the untapped market in India for its core product is huge and all this is factored in the current price of Kingfa

Sandeep Das

10 months ago

Ya I agree with Dulip. Stock turning out to be 88 bagger does not necessarily mean its manipulated. The debt of 75 crore reduced substantially as well. Right now the stock is expensive but valuations are also catching up and earnings will do the same as well. Also there is a huge expansion plan and the untapped market in India for its core product is huge and all this is factored in the current price of Kingfa

DULIIPTMEHTA

10 months ago

Just because price went up 8000℅ in 3 years , can not be reason for manipulations. You must substantiate with facts and figures to help your readers to be alert from such co.

Wipro disagrees with CAG on undue favour by UIDAI
Global software major Wipro Ltd disagreed with the findings of the Comptroller and Auditor General of India (CAG) that the Unique Identification Authority of India (UIDAI) had shown undue favour to it, the company said on Wednesday.
 
"We disagree with the findings of the (CAG) report that UIDAI extended undue favor to us. We draw attention to the latter's response in the report that the acceptance of goods was given by the competent authority in UIDAI after commissioning the equipment," the IT major said in a statement here.
 
Asserting that it maintained highest standards of corporate governance and transparency, the company said UIDAI had signed the annual maintenance contract after the warranty period expired.
 
In a report tabled in Parliament on Tuesday, the statutory auditor said UIDAI had granted undue favour to Wipro in a maintenance contract worth Rs.4.92 crore.
 
"The UIDAI, in contravention of the provisions of the contract, extended undue favour to the vendor (Wipro) and incurred an avoidable expenditure of Rs.4.92 crore on annual maintenance contract of the equipment for a period covered under warranty/free maintenance," the CAG report stated.
 
According to the 'General Conditions of Contract', the vendor was responsible for erection and installation of the goods and services at the destination sites and for making them fully operational, subject to an acceptance test based on the prescribed norms.
 
"The UIDAI did not route its advertisements through the Directorate of Advertising and Visual Publicity in accordance with the advertisement policy of the Ministry of Information and Broadcasting. This led to loss of Rs.1.41 crore as the eligible discount was not availed," the report added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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COMMENTS

T.c. Shivswamy

10 months ago

Though Real estate bill has come into effect it isstill left to the sweet will of the state governments to appoint regulatory bodies.Even Consumer protection Act requires the state governments to frame rules to implement the decisions which is causing undue delays in providing justice to consumers.Even our Judicial system which requires reforms have yet to see them. Ordinary citizens are caught in the vicious web of corruption and delay in all areas of Governance.

Agriculture in 115 Indian districts most at risk from climate change
As floods ravage eastern and northern India, agriculture in 115 districts across 15 states is "highly vulnerable" to climate change, according to a study published in the Indian Academy of Science journal Current Science.
 
The first to analyse 38 meteorological, agricultural and social data across all of India's 572 rural districts, the study creates a climate vulnerability index for agriculture, divided into five categories of vulnerability: Very high, high, moderate, low and very low.
 
The vulnerability index has already been used by the Indian Council of Agricultural Research to demonstrate climate-resilient agricultural practices in 121 of either the "very high" or "high" vulnerability districts identified by the study, its co-author, Alok K. Sikka, India's representative and principal researcher at New Delhi's International Water Management Institute, told IndiaSpend.
 
While the study is possibly the most comprehensive yet, independent observers said it may yet be inadequate to inform local decision-making on climate change.
 
Most of the "very highly vulnerable" districts come from India's western and peninsular regions. Rajasthan has 25 "highly vulnerable" districts, the most in this category nationwide. Gujarat, Madhya Pradesh, Karnataka, Maharashtra, Andhra Pradesh, Tamil Nadu, eastern Uttar Pradesh and Bihar also exhibit "very high" and "high" vulnerability, the study said.
 
Least vulnerable to climate change are districts along India's west coast, northern Andhra Pradesh and the northeastern states. Assam has the highest number of districts, 13, of "very low vulnerability".
 
The new study's 38 indicators, used nationally, are sub-divided into three categories --sensitivity, exposure and adaptive capacity. Some of the indicators that define sensitivity include degraded land, annual rainfall and vulnerability to cyclones or drought. Exposure is defined by indicators such as maximum and minimum temperature, heat-wave or cold-wave frequency and dry spells. Adaptation indicators included workforce in agriculture, literacy, gender gap, rural electrification and paved roads.
 
The index reflects relative vulnerability of a district, on a scale from 0 to 10, with 0 being the least vulnerable.
 
The index furthers research into India's climate-change vulnerability, at a time when, as IndiaSpend reported in April 2015, extreme rainfall events in central India, the core of the monsoon system, are increasing and moderate rainfall is decreasing -- as a part of complex changes in local and world weather.
 
Climate change is a complex subject, adaptation requires continuing research
 
This is not the first time scientists have tried to compute Indian agriculture's vulnerability to climate change, but these have been localised.
 
An index of this kind holds the great potential in helping formulate strategy and even policy for climate-resilient agriculture. A good vulnerability assessment should "help in identifying adaptation options".
 
"Our study chose to reflect the changing climate in terms of indicators like changes in rainfall, dry spells, temperature etc, which are of actual use in adaptation research," said C.A. Rama Rao, study co-author and an agricultural economist with Hyderabad's Central Research Institute for Dryland Agriculture.
 
But assessing vulnerability to climate change is a process so complicated that even the wide-ranging datasets used by the new study may be inadequate to inform policy on climate change.
 
The index should be used with "great caution" since data has not been "obtained on all the variables/indicators for a uniform reference period", said Ravi Khetrapal, regional advisor of strategic science partnerships at the Centre for Agriculture and Biosciences International (South Asia), a nonprofit focussed on agriculture research. He also said the data has "not been collected for a reasonable period of time and averaged", a flaw the authors acknowledge in the paper.
 
While "district level analyses are good to provide a snapshot of vulnerabilty, more data at the micro-level is needed for validating trends", said Divya Mohan, science policy officer at the Swiss Agency for Development and Cooperation, New Delhi. Mohan has previously worked on vulnerability in the Indo-Gangetic plain.
 
Climate-resilient agriculture in India has started getting attention
 
Climate change could effectively negate India's economic progress, pushing 45 million Indians into extreme poverty over the next 15 years, according to a November 2015 World Bank report. It recommended the use of more climate-resistant crops and livestock to counter a predicted drop in agricultural productivity.
 
The Current Science study indicates that climate-resilient agriculture is now receiving attention from researchers and policy-makers.
 
The vulnerability index paper is the result of a 2011 central government programme called Nicra (National Innovations on Climate Resilient Agriculture), which enables research partnerships between 40 ICAR institutes in various agricultural sub-sectors, such as field crops, horticultural crops, livestock, and fisheries.
 
Despite the research, farmers across the country are unprepared for climate change. "Thanks to ICAR, we are doing well in terms of research but not enough in terms of extension and development programmes by state governments," said Khetrapal.
 
The vulnerability index may have its flaws, but it is possibly the only tool currently available to assess Indian agriculture's susceptibility to changing climate. How it will be used to make a difference to farmers so affected is another matter.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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