Jyoti Resins & Adhesives shot up by 954% from January 2015 to March 2016. Is anybody keeping an eye on such rampant manipulation?

Jyoti Resins & Adhesives produces synthetic resin adhesives for application on wood, under the brand name EURO 7000. The Ahmedabad-based manufacturer reported a total turnover of Rs38.97 crore for the year ended December 2015, up 68% from Rs23.19 crore for the same period a year ago. Sales may have improved in the past few years, but this has failed to translate into bottom-line growth. Over the same period, Jyoti Resins reported a net profit of Rs65 lakh (CY2015) and a loss of Rs37 lakh (CY2014). In May 2015, the promoters pledged nearly their entire stake, 35% of the total shareholding, to Kalupur Commercial Co-operative Bank for a loan. Coincidentally, since then, the share price price has moved up substantially. In March 2015, Jyoti Resins had total debt-to-equity ratio of 2.20 times. Despite high debt and weak financials, with about 1,400 shareholders, the stock price of Jyoti Resins shot up by an eye-popping 954%, or nearly 11 times, in just over a year to Rs102.25 on 16 March 2016 from Rs9.70 on 1 January 2015. The stock is quoting at a price-to-earnings of 59 times. Who is involved in this blatant price-rigging? In April 2003, the promoters were debarred from the capital markets for manipulating the price of Jyoti Resins. However, the debarment was just for a period of one year. Thanks to lax regulations, price manipulators are at it again.