This week’s Did You Know highlights a company that has no sales, no profits and yet has a market capitalization of Rs 3650. The company is Rise International.
In the past few days the company’s market cap was actually Rs 3400 crore. So, in the last three-four days itself we have seen it increase by Rs 250 crore. The company was earlier known as Govindji Trikamdas Exports and the new management took over this company only in 2011.
The company, as said on the website, deals in iron scrap, yarn fabrics and they are also venturing into real estate.Financials
It is only in the first nine months of 2013 that they did something in terms of sales- Rs 100 crore but the profit after tax (PAT) is nearly Rs 3 crore. However, in the last five years- 2009 to 2012- the total sales was only Rs 4 crore.
In the last five years, the company made a loss of Rs 39 lakh. Sales for 2013 was Rs 3 crore; 2012 sales were 0. The years before 2011, 2010, and 2009 have nothing to talk about and there was no profit that the company earned in the last five years from 2009 to 2013.
At one point the stock price of this company was only Rs 85. So, in one year the stock rose from Rs 100 to as high as Rs 1200. So, the stock grew 1300-1400 percent in terms of stock price.
The company’s promoter holding right now is the company 13.5 percent. There are 109 corporate bodies who own 8.7 percent stake but it is 88 individuals who own nearly 70 percent stake in the company. So, if one was amongst those 88, he/she would be sitting on a lot of wealth.
About 70 percent stake is held by only 88 individuals in this company. The stock actually started moving up in September 2011 when there was nothing in this company. At that point of time, the promoter holding in this company was 43 percent but the change came in December 2011 which is exactly after three months when the promoter holding fell from 43 percent to as low as 7 percent in one quarter. Again in March 2012, when the new management came in, the promoter holding went up from 6 percent to 20 percent and now it is 13 percent.
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