Skip to main content

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 !
Labels:

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !
Read more

What is Specialized Investment Fund (SIF)

What is Specialized Investment Fund (SIF) SEBI rolls out Specialized Investment Fund with Rs.10 lakh minimum investment. What is Specialized Investment Fund? This newly launched class aims to fill the space between mutual funds and PMS, offering a flexible and specialized option for investors who are willing to make riskier bets and seek higher returns. Why the Need for SIFs? Mutual funds, by nature, attract a wide range of investors and are governed by strict regulations to ensure broad accessibility and safety. They are more suitable for conservative investors or those with a lower risk appetite.   On the flip side, PMS offers tailored strategies but typically requires a significant minimum investment (Rs.50 lakhs and above) often too large for smaller investors, and with a complexity that may seem daunting for those without deep financial expertise.  This is where the SIF comes in. SIFs are designed for those who are more informed about the market, willing to take on a hig...
Read more