These two stocks have zoomed over 100% in last three weeks
Shares of Kohinoor Foods (Rs 70.95) and Hindustan Motors (Rs 25.55) continue their upward march with the market prices of the two companies having more than doubled in the past three weeks.
The two stocks were trading at their respective 52-week highs, locked at the 5 per cent upper circuit on the BSE on Tuesday. In comparison, at 12:30 pm, the S&P BSE Sensex was down 0.06 per cent at 52,813 points.
In the past three weeks, Kohinoor Foods has zoomed 137 per cent from a level of Rs 10.77 on May 24, 2022, while Hindustan Motors has rallied 106 per cent from Rs 34.40 on the BSE.
Shares of Kohinoor Foods were locked in the upper circuit for the 47th day. The stock of the agricultural products company has skyrocketed 813 per cent from a level of Rs 7.77 on April 6, 2022, after the stock exchanges revoked suspension of trading in the security. Prior to this, the stock had last traded on May 3, 2021 and ended at Rs 7.55 on the BSE.
Currently, Kohinoor Foods is trading under the T group on the BSE and under BE category on the NSE. In the T2T and BE segment, each trade has to result in delivery and no intra-day netting of positions is allowed.
Kohinoor Foods is primarily engaged in the business of manufacturing, trading and marketing of food products. The company offers an extensive range that caters to consumers’ need across the world – ranging from a wide variety of basmati rice, ready to eat curries and meals, readymade gravies, cooking pastes, chutney’s, spices and seasonings to frozen breads, snacks, healthy grains, and edible oils.
The most powerful brand of the company ‘Kohinoor’ is a household name in countries like USA, UAE, Canada, Australia, Middle East, Singapore, Japan, Mauritius and other European countries.
Banks have classified the company’s accounts as non performing assets and served it a notice in the month of July 2018 to March 2019 and during February 2020 to September 2020. The company has replied to the said notices and it is negotiating with different workable options, Kohinoor Foods said in its March quarter results.
As regards to Hindustan Motors, the company had said the movement in the share price of the company or spurt in volume in its shares is purely based on market sentiments and the company has no inputs/comments in this regard as it is in no way connected with any such movement in price.
“There is no pending information or announcements, which have a bearing on price movement in the shares of the company at our end. The movement in price or spurt in volume of trading in shares of the company is purely market driven and the company or its promoters or any key managerial personnel has nothing to do with it. Further, we have also enquired from our RTA and Promoters/ Promoters group and have been informed that they have not purchased/sold any shares in last 6 months,” Hindustan Motors said on May 31, 2022.
According to media reports, Hindustan Motors is likely in talks with an European auto company focused on the electric vehicle (EV) space for a joint venture. A memorandum of understanding (MoU) has been signed and due diligence is expected to start shortly and will take 2-3 months to conclude, Business Standard reported on May 25, 2022. CLICK HERE FOR FULL REPORT
In its FY21 annual report, Hindustan Motors had said that it aimed to revive operations and had started process of rationalising cost post suspension of work at Uttarpara plant.
Also, the company has been engaged in scouting tie-ups with potential investors or strategic partners who can introduce newer product portfolios in the market and infuse capital into the company.
Besides that, the company is considering various measures including alternative use of fixed assets to generate revenue.
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