Pearl Agriculture has risen by 46 times in a little over a year!
Moneylife Digital Team 04 September 2014

For a company with a revenue of Rs10 crore and negligible profits, Pearl Agriculture Limited has a mind-boggling market cap of Rs1011 crore

 

Pearl Agriculture Ltd (PAL) was incorporated in October 2012 through a demerger of the agriculture division of Nouveau Global Ventures (NGV), a listed company. Investors were allotted 55.89 shares of PAL for every 100 shares of NGV. On 18 March 2013, five months after a High Court approval, PAL was listed on the BSE. Over the past four quarters, PAL has reported a total revenue of Rs10 crore and negligible profit. Yet, PAL finds a place on the S&P BSE Small Cap Index. The promoters have reduced their holding to 14% as on 30 June 2014 from 36% at the time of listing. Corporate bodies, too, have reduced their stake to 14% from 38% during this period even as the stock price has risen vertically by 4,519%, or over 46 times, to Rs46.65 as on 22 August 2014 from Re1.01 as on 19 March 2013. This has raised no heckles among the regulators and exchanges who remain blissfully unaware that the stock price continues to trend even higher, leading to an astonishing market-cap of Rs1,011 crore.
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