Stock Manipulation
Stock manipulation: Vitan Agro Industries

Vitan Agro Industries shot up by 1465% between July 2014 and December 2015

 

Vitan Agro Industries is into “trading of agro-based consumer goods such as pulses, grains, etc.” According to its annual report of FY14-15, it plans to venture into delivering packed lunches to companies, educational institutions, IT hubs, etc, on contract basis, and own, manage and run hotels and restaurants. For this, it has acquired two companies. 
 
Despite its bold business plans, as on 31 March 2015, there was only one employee on the rolls of this Chennai-based company! In the four quarters ended September 2015, it reported revenue of Rs5.34 crore, up 62% from Rs3.29 crore in the same period last year. The profit remained the same, at Rs0.31 crore, in both the years. 
 
However, the price movement of the stock has been stunning. It shot up to Rs15.65 on 16 December 2015 from Re1 on 17 July 2014, an eye-popping gain of 1,465%! There was hardly any trading activity prior to September 2014. When it started rising, the stock was constantly locked in the upper circuit. By 8 June 2015, the price was up 3,544%. to Rs36.44. This is when the reversal started. Over the next six months, the price was locked in the lower circuit on almost every trading day. The price has fallen nearly 57% from the peak, over this period. Vitan Agro has around 600 registered shareholders. Will the regulator investigate this ‘pump & dump’ operation? 

User

Stock manipulation: Mahanivesh (India) Ltd
Mahanivesh shot up by 502% between March 2014 and December 2015
 
Mahanivesh is supposedly into arranging ‘project finance’ and investments. But its main income is from trading. In September 2015, the company’s management decided to pursue the fad of the decade—e-commerce—and decided to change the name of the company. 
 
For the year ended September 2015 Mahanivesh reported revenue of Rs51.66 crore, up from Rs49.67 crore (just 4%) for the comparable period last year. But it reported a net loss of Rs2 lakh for the year ended September 2015, and net loss of Rs30,000 for the year ended September 2014. 
 
Despite virtually no profits being generated over the past three years, the stock shot up by 502%, to Rs514 on 2 December 2015, from Rs85 on 22 March 2014. In fact, the stock staged a continuous rally of 614%, from Rs98 on 13 October 2014 to an intra-day high of Rs700 on 13 November 2015. However, since then, the stock price has been on a decline. It has fallen nearly 26% from the peak. The stock has averaged just about 12 trades a day from March 2014 to November 2015. In the 79 days that the stock was traded, of the four-month period ended November 2015, on an average, just one to four trades per day were conducted. As on 30 September 2015, Mahanivesh had just 243 shareholders. 
 
In 2007, the company was suspended by the Bombay Stock Exchange for not complying with the listing agreement. Will the regulator investigate this suspicious trading activity?

User

Stock manipulation: Himachal Fibres

Himachal Fibres shot up by 3318% in just over a year

 

Himachal Fibres manufactures cotton and synthetic blended yarn. The business, however, seems to be going through a tough time. The textiles manufacturer reported a decline in sales in four of the past five quarters up to September 2015. Total sales were Rs82.24 crore for the year ended September 2015, down 13.27% compared to those in same period a year ago. The company reported a total net loss of Rs1.12 crore and Rs0.60 crore for the year ended September 2015 and September 2014, respectively.  Despite its poor financials, the stock price shot up a remarkable 3318%, or 34 times, to Rs45.80 on 20 November 2015, from Rs1.34 on 19 September 2014. Had you invested Rs10,000 in this stock, in just over a year, your investment would be worth about Rs3 lakh. In February 2015, the stock was split from Rs10 to Rs1. In November 2007, Himachal Fibres was suspended for not complying with the listing agreement. With almost nil trading activity prior to September 2014, beginning September 2015, the stock has witnessed strong trading volumes. The average trading turnover increased by 55% to Rs95.83 lakh during the period from 1 September 2015 to 15 November 2015, compared to that in the same period in 2014. The average trading turnover then was Rs1.70 lakh. With just about 2,100 shareholders, the number of daily trades averaged as high as 1,300 in October 2015. Is this another pump & dump operation? Will the regulator investigate?

User

COMMENTS

Prashant Rishi

2 years ago

How can one see/calculate the following metrics mentioned in the article:
1. Avg daily turnover of a scrip
2. Avg number of daily trades of a scrip

Thanks for help.

Regards,
Prashant

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