Meglon Infra-Real Limited's stock rises in 19 months
Moneylife Digital Team 21 August 2014

In just over 19 months, the share price of Meglon has run up 410%. Meglon has been reporting sales of just Rs2 lakh-Rs4 lakh over the past 11 quarters and hardly any profit

 

Meglon Infra–Real Limited (Meglon) has changed its name five times since its incorporation in 1987. It was earlier in the financial services and was known as Leafin Investments. The name was changed to Leafin Financial Services and then to Canaan International Credicap. In 1999, during the dotcom boom, it conveniently ventured into the information technology and changed its name to Canaan International Infotech. In 2010, Meglon decided to shift its focus to realty; hence, the present name. Meglon has been reporting sales of just Rs2 lakh-Rs4 lakh over the past 11 quarters and hardly any profit in any of these quarters. But, of course, what have fundamentals got to do with the stock price? In just over 19 months, the share price of Meglon has run up from Rs2.46 on 8 January 2013 to Rs12.55 on 8 August 2014—a rise of 410%. This is despite the fact that the stock is under the periodic call-auction system because it is thinly traded. Meglon has been pulled up by the exchanges several times in the past for compliance issues and has even been suspended for trading. But the regulators can’t be bothered about the rampant market manipulation.
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