- Date : 01/07/2022
- Read: 3 mins
Kohinoor Foods up 164% in the last 21 days
This year has not been good for the stock markets. The Nifty50 was down almost 15% from the all-time highs last year. This year has been plagued by increased interest rates, high inflation, and the war between Ukraine and Russia. This has resulted in weak markets and hence low returns for the investors. Nifty Smallcap index has performed even worse, with the index losing more than 30% from the peak hit last year.
But what if we told you there is a stock in the markets which is up 164% in just the last 21 days. You will be shocked, right. But Kohinoor Foods, mostly known for basmati rice, has been performing exceedingly well at the bourses. The stock has been up 164% in the last 21 days. Also, in April, the stock was trading at just Rs 8. Thus the stock has been up more than 1260% since April of this year.
Why this dream run on Kohinoor Foods?
On April 6 2022, the ban on trading in Kohinoor Foods was revoked. Since then, it has been trading on various upper circuits, and in the last 2.5 months, it is up a massive 1260%. As of June 27 2022, the stock is trading at Rs 106.2, up 4.99% over the previous day. It is closed on an upper circuit for the day.
The company deals in basmati Rice, ready-to-eat curries and meals and other food-related products. The company has a market cap of Rs 393 crores as of June 27 2022. The company's market cap is less, and it is classified as a Smallcap stock.
NSE sought clarifications
As the stock was witnessing such a huge rise that the NSE sought clarification from the company in April regarding the increase in share price. The company replied that they were unaware of the reason for such a rise and said that the rise was more market-driven rather than news-driven. The management replied that they do not know the reason for the rise in the share prices.
The company is slowly becoming a favourite for speculators from a penny stock in April. The returns are enticing people to join the rally in the stock price. But the market movements are subject to risk, and you should not invest in a company just because the stock is going up.
Kohinoor Foods has given a great return in the last 2.5 months, as the ban on trading was lifted. The company is mainly known for basmati rice, but it also has other food-related businesses. You should do your due diligence before buying a stock, and buying a stock for the sole reason it is going up might be a bad investment decision.