Devhari Exports started as a share-broking firm in 1994 under the name LD Lakhani Securities Limited. It then moved into export business in 1995 and changed its name to Devhari Export (India) Limited in 1999. The company is now engaged in the business of the trading of steel. It reported negative revenue of Rs4.4 crore for the December 2016 quarter and revenue of Rs9.36 crore in the March 2017 quarter. It made an operating loss in the March 2017 quarter, as expenses were higher than sales. Even when the sales grew 10-fold from Rs1.48 crore in FY15-16 to Rs14.05 crore in FY16-17, the company made no profits in FY16-17. The company had made a loss of Rs34 lakh in FY15-16. And, yet, the price of the stock has increased 582% from Rs1.31 on 10 May 2016 to Rs8.93 on 1 August 2017. It is interesting to note that the stock had listed on 10 July 2015 for Rs1.25 and remained at that level until May 2016. Since then it started to run up peaking at 810% return in 11 months. The stock’s traded volume is also highly volatile; in October 2016, on two consecutive days, the stock traded at volumes of over 10 lakh shares and, on the third day, the volume of shares traded was only 35.
The paid-up capital is Rs7.43 crore and the market-capitalisation of the company is Rs58.10 crore. The promoter shareholding is 18.17% (held by two promoters only, split equally). Zarna Solanki, a director, resigned in November 2016 and Pooja Khatuwala was appointed to replace her with immediate effect. Pooja Khatuwala resigned within two months and Ms Zarna joined again as director in January 2017. The chief executive officer, Narendrasinh Manubha Zala also resigned in January 2017. The market regulator, as usual, is sleeping.