Everonn Systems and Akruti City

Everonn Systems had came out with an IPO last year at Rs.140 and the stock listed at 400 and hit an high of 1200 within few months of listing. Recently the stock hit a yearly low of 79. The stock is up 100% in a just two days ! So what’s the reason behind this big up move?

No great news to write home about. It just another case of operator driven hi-flier. Prior to this rally, the average volumes of the stock were 6 lakh shares, whereas in the couple of days the volumes are more than 1 cr shares. The delivery volumes were meagre 3 lakh shares, which confirms the high speculative activity going around.

Though the fundamentals of Everonn seems reasonable, reporting an annualised EPS of Rs.20, with a P/E ratio of 7 times, the stock has gone up sharply warrants a caution. Probably it is running along with Educomp, also up 40% in just a few days.

Another hi flier, Akruti City , up from Rs.810 to Rs. 1600, in just couple of weeks.The stock hit a year-low Rs.600 in Jan 2009. When all other realty stocks are hitting year lows, Akruti seems to be trading in a different universe. The stock has hit a year-high of 1600. The momentum could take up a few hundred rupees more.

Fundamentals of Akruti are terrible. The company has reported a quarterly EPS of just Rs.3, on an annualized works out to Rs.12. The current P/E of that stock at CMP of Rs.1600 is staggering 130 times.

So what is SEBI doing? Yes ! you know .No prizes for guessing !

Buyer beware !

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