Stock Manipulation
Stock manipulation: Padmanabh Industries
Ahmedabad-based Padmanabh Industries, formerly known as Nilchem Industries Limited, is a chemicals trading company. For the quarter ended December 2016, the company reported no sales and net loss of Rs3 lakh. This wasn’t the first quarter in which there were no sales; it has reported no sales consistently from March 2014 to December 2015 quarter and showed sales of Rs31 lakh, Rs3 lakh and Rs1 lakh in March 2016, June 2016 and September 2016 quarters, respectively. Padmanabh has been reporting losses since FY10-11, except in FY13-14, when it reported no profit and no loss. 
 
The company’s reserves stand at a negative Rs20 lakh, while the share capital is Rs4.58 crore. The promoters hold only 2.94% of the total shares. However, an examination of public shareholding shows that shares are held by the promoters and their family, but are just not listed under promoter shareholding. 
 
The stock was suspended from trading on the BSE from 27 August 2015 due to penal reasons. However, on submissions and representations made by the company, on 29 January 2016, the BSE revoked its suspension and trading started from 3 February 2016. Despite there being no business, no revenues and incurring losses, the share of the company rose by 2034%, to Rs62.3 on 6 March 2017, from Rs2.92 on 13 October 2014. Will SEBI care to investigate? 

User

Stock manipulation: Source Natural

Source Natural, earlier known as Invinex Laboratories, was supposedly into pharmaceuticals products. It later changed its name to Source Natural Foods and Herbal Supplements Limited to manufacture foods and ayurvedic products, now in fashion. It apparently sells herbal products and supplements. On contacting the company, we learnt that it sells a product called Ojasvita, a milk powder that comes in three flavours, and another product, called Shakti drops, supposed to be some kind of energy drops to be added to water and taken as nutrients. These products are not sold directly, but can be bought through a website intriguingly called srisriayurveda.com.

 

The company claims to have sold these two products worth Rs10.93 crore in FY15-16 and made net profit worth Rs43 lakh. It has total assets of Rs6.62 crore; reserves and surplus is negative, at Rs88 lakh. In the past five years, the company has managed to achieve an average sales growth of 89.27%, but on a tiny base. In many quarters, it has either made no profits or has made a loss. Even with such strange fundamentals, the stock rose by 868%, to Rs115.25 on 21 February 2017 from Rs11.9 on 3 January 2015. The P/E is 80.84. A hot growth stock or manipulated scrip? We will never know because the regulators are somnolent. 

User

COMMENTS

Sudeshna Datta

9 months ago

Dear Moneylife, You guys are doing great job to bring transparency in Indian equity markets. Thanks a lot for bringing these issues periodically. However, I beg to differ in the matter of Source Natural, equity markets work on forward looking opportunities, and Source Natural is a perfect example of that, there is a visible turnaround from last 4 quarters and looking at the success of Patanjali lot of investors believe that Source Natural also have favorable growth runway left for it. As far stock price movement is concerned, try to buy even 100 shares it will hit upper circuit as the liquidity is low. Please look at the name of the manufacturer here http://www.amazon.in/Sri-Ayurveda-Ojasvita-Chocolate-Petjar/dp/B01H77DMPS. Hope you will dig further now and see if there is merit in this scrip

naveen bachu

9 months ago

If you keep publishing without basic research you will lose credibility of Moneylife which will be u fortunate. This is a genuine sri sri Ayurveda product company - see ownership and products. Last qtr fy17q3 annualized revenue is 24 cr and Pat is 5.2 cr. Trading at 3 times sales and 16 pe for a fact company growing 100pc yoy is not expensive

REPLY

Bansri Juneja

In Reply to naveen bachu 9 months ago

1. The company itself does not claim that it sells Sri Sri product, we spoke to the company over phone and were told that these two are the only products that they make and sell. 2. The company has shown growth only in the December quarter. It was a shell/dormant company all these years. 3. The price to earnings ratio of the company is 89.09 as per current market price levels, when calculated on a trailing twelve month basis. Calculating the ratio by annualizing just one quarter will give you an incorrect picture. Similarly when one annualizes sale of just that quarter when the company has managed to do better than the previous quarters, he or she is only trying to look at the rosy picture.

naveen bachu

In Reply to Bansri Juneja 9 months ago

1)in a fast growing company the market looks at forward 12 months if not further ahead. Value of a company comes from future earnings not past. 2)even prior to this the annual revenue was 12 cr so not a shell company.
3) goto any sri sri store and check the label on ojisatva. Made and sold by this Co. 50% of their revenue

Abhishek Kedia

9 months ago

Thanks Money life for reporting this stock. Guy on Twitter "ArunstockGuru" posted for growth and I had commented on them by tagging Sucheta Ma'am. Social Media is used for these purposes. Thanks Moneylife for reporting!

Parimal Shah

9 months ago

I think, like the government 's corrupt babus the regulator too prefers to look the other way when the culprit is running away.

Stock manipulation: Maha Rashtra Apex Corporation

Maha Rashtra Apex Corporation Limited claims to be into leasing, hire purchase and bill discounting services. It has nine branches and one franchisee across the country. Over the past several years, the company has made no significant sales, barring in one year, and has been making huge operating losses. These losses get reduced at the net loss level because of the other income it receives.

 

This other income is the interest received on bank deposits. For FY15-16, sales were Rs1.26 crore whereas the operating loss was Rs6.84 crore. Net loss stood at just Rs8 lakh because of other income —of Rs9 crore. However, the stock has moved by 3702% in two years, from Rs3.68 on 17 March 2015 to Rs139.9 on 3 February 2017. Why? Maybe Securities and Exchange Board of India (SEBI) can tell, if their expensive surveillance system is working. 

User

COMMENTS

Nil Soni

2 months ago

Maha Rashtra Apex Corporation is holding significant stake in Kurlon Ltd. You should have done proper research before writing such misleading articles. Read BSE announcement titled Outcome of Board Meeting (Execution of the Investment Agreement) dated 01 Sep 2015 for more details. I am holding this shares since long time and bought it from buysellunlistedshares[at]gmail[dot]com if anyone wants to buy or sell any shares you can directly contact them

Durga Prasad

9 months ago

The stock is up because its the holding company of Kurlon mattress. Sheela foam recently got listed and now commands mcap of Rs5000 crores plus. Maha rashtra apex started moving up after the listing of Sheela Foam. Kurlon is the no 1 company in India and is bigger than Sheela Foam. So one can expect Kurlon to be worth more than Sheela Foam. Stock investors are now looking at holding value and not based on revenues or profits from current business

Jay

9 months ago

There is news that Kurlon Enterprise or Kurlon Limited will come with an IPO very sonn. Hence the valuations. I am personally holding 1000 shares of kurlon limited. If anyone wants to buy then get in touch with me.

jay_shahgm[at]yahoo[dot]com

REPLY

Narendra Pai

In Reply to Jay 9 months ago

What will ve the market price of kurlon, even I am having few shares

Kunal Singh

9 months ago

Now moneylife is just doing it for the sake of it. Not every move is a "manipulation" or rigging. If you actually carried out some real investigation and presented "facts", it'd be good. Otherwise, it's just like filling the pages. The scrip ran up after Sheela Foam got listed. It'd be nice to state some facts of how the company has defaulted on fixed deposits in the past. Only, if you really investigated.

Deepak Agrawal

9 months ago

Financials do not always reflect value. In this case, it's hidden in balance sheet. It's holding company of kurl-on, iconic mattresses brand. Investment is at bv in balance sheet and does not reflect true value.

Deepak Agrawal

9 months ago

Financials do not always reflect value. In this case, it's hidden in balance sheet. It's holding company of kurl-on, iconic mattresses brand. Investment is at bv in balance sheet and does not reflect true value.

Varadaraya Mallya

9 months ago

Suchetha Mam, would like to bring to your notice that Maharashtra Apex was the original Sharada Chit dund scam of the south when lakhs of depositors were defrauded of their hard earned money in 2001. The company clakmed loss and inability to pay back deposits to lakhs of honest Indians in what is called the cradle of Indian Banking, i.e., Mangalore/ Udupi

Roshan Thapa

9 months ago

It hols 35% stake in Kurlon Enterprises, leading mattress brand of India.

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