Share price of Kunststoffe Industries zoomed 251%, but regulators couldn’t care less about the facts staring in their face.
Kunststoffe Industries is supposedly into ‘polymer processing’ and has a plant in Daman. In 2007, it was declared sick by the BIFR. Earlier, in 2006, it had been issued a demand notice by Mumbai Debts Recovery Tribunal to pay up over Rs1 crore to Bank of Baroda. A draft rehabilitation scheme was prepared which has still not been cleared, according to 
the company’s 2012 annual report. The company has also not complied with shareholding pattern norms since December 2008. Yet, it continues to be listed, with poor fundamentals.
Its net sales for the past four quarters were: Rs34 lakh (December 2012), Rs28 lakh (March 2013), Rs45 lakh (June 2013) and Rs54 lakh (September 2013). Its net profit has been erratic and poor: net loss of Rs6 lakh (December 2012), Rs20.06 crore (March 2013), Rs4 lakh (June 2013) and Rs10 lakh (September 2013). This did not prevent its share price from zooming 251% between 24 June 2013 and 29 November 2013, from Rs5.1 to Rs17.90. The regulators couldn’t care less to the facts staring in their face.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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