Stock manipulation: Rudraksh Cap-Tech

With just around 250 retail shareholders, the share price of Rudraksh Cap-Tech shot up a stupendous 1182% in just a year

 

Rudraksh Cap-Tech (earlier known as Jolly Leasing & Finstock) deals in financial services. Though ostensibly it has a varied list of service offerings, no details of contracts undertaken, contract values or even the number of clients are mentioned either on the website or the annual report. Over the past seven quarters (June 2013 to December 2014), it has generated revenues of just about Rs2 lakh-Rs3 lakh each quarter. Net profit averaged just around Rs60,000 each quarter. This did not hamper trading in the stock which has only 242 retail shareholders. The share price shot up  a stupendous 1182%, to Rs85.90 in April 2015, from Rs6.7 in May 2014. In the nine-month period, from 6 May 2014 to 12 February 2015, the stock was consistently hitting the upper circuit, rallying 1400% to Rs100 from around Rs7. Since then, trading has been volatile. In March 2015, the stock had an average trading volume of Rs23 lakh a day, up from about Rs2,000 a day in May 2014. Rudraksh was hauled up several times in the past for regulatory non-compliance issues, but no strict action has ever been taken against the management. Will this blatant price manipulation go unnoticed as well? 

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    Stock manipulation: Vipul
    Over the past one year, the stock price of Vipul shot up by 883%. Even though nearly 35% of the promoters’ shares is pledged, this does not appear to be a concern for the regulator
     
    Present on the S&P BSE Small Cap index, Vipul Ltd  generates revenue from the construction and development of real estate. Over the past four quarters, this small-cap stock has generated total revenue of Rs267 crore and a net loss of Rs3.68 crore. The stock was thinly traded until a year back, with a turnover of about Rs1,000 per day in February 2014. However, the trading turnover shot up to over Rs10 lakh a day in February 2015.
     
    Over the past one year, the stock price has shot up by 883% to Rs45.90 on 1 April 2015 from Rs4.67 on 25 March 2014. Nearly 35% of the promoters’ shares have been pledged to multiple finance institutions to secure loans. The steep rise in the stock price and the high quantity of pledged shares do not appear to be a concern for the regulator.
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    Stock manipulation: Twentyfirst Century Management Services

    The stock price of Twentyfirst Century Management Services is up 926%. The stock averages just about 75 trades a day, with an average daily turnover of only Rs6 lakh

     

    Twentyfirst Century Management Services (TCMS) is apparently engaged in trading and investment in Indian capital markets. In 1998, its registration as a merchant banker was revoked for not exercising due diligence. In 2008, TCMS was suspended from trading due to non-compliance with the listing agreement. TCMS cites poor market conditions for its poor financial performance in the past few years. Because of low retail participation, TCMS withdrew the broking services offered by its subsidiary Twentyfirst Century Shares and Securities and surrendered the trading membership of the NSE. It reported marginal revenues and a net loss in past few years. But, suddenly, over the past few quarters, its fortunes changed. For four quarters ended December 2014, it generated revenues of Rs19.35 crore while net profit amounted to Rs14.87 crore. The stock price is up 926% to Rs39 (on 20 March 2015) from Rs3.80 on 19 March 2014. The stock averages just about 75 trades a day, with an average daily turnover of only Rs6 lakh. Not suspicious enough for the regulator, despite the stock’s vertical trajectory? 

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