A fairy tale for investors: This small-cap basmati rice stock moves from nearly Rs 8 to Rs 72 in just a span of two months!
Can you believe a stock that was trading in single-digit some two months back is now trading sevenfold?!
Fairy tales have been a part & parcel of everyone’s childhood. From giving us a good night’s sleep to encouraging us to face adversity with courage, these fairy tale writers of Cinderella to Snow White, have shaped our lives in the most imaginative and creative way. Sad enough, as we grow up, we believe that those fairy tales do not take place in real life but were just mere imaginations of creative writers.
However, what happened on D-Street recently would make you believe in fairy tales all over again! This rags-to-riches story of a penny stock seems to come straight from a fairy tale world to real life. Can you believe a stock that was trading in single-digit some two months back is now trading sevenfold?! Hard to believe but it is true!
The stock that we are talking about is Kohinoor Foods Ltd (KFL). It has touched our lives with not only some of the finest basmati rice brands but also, a wide assortment of food products that includes basmati rice, wheat flour, ready-to-eat curries & meals, simmer sauces, cooking pastes & spices, seasonings, and frozen food. The company has further expanded its product basket to pure ghee, paneer (Indian cottage cheese), ready mixes, namkeens & sweets.
On April 6 of this year, the ban on trading in this stock was revoked. It was seen roaring like a lion post witnessing a parabolic rise from Rs 7.75 to the level of Rs 72. The stock has hit multiple upper circuits on the way up. It zoomed over 800 per cent in just a span of 47 trading sessions.
Upon witnessing a breathtaking return, even the stock exchange wanted to seek a clarification from the company regarding its price movement. However, Kohinoor Foods Ltd clarified stating that “we are not aware of the reason for the significant movement in the price of our shares. The movement in the share price is purely market-driven and may be a combination of various factors including market conditions. The management of the company is in no way connected with the movement in the price of the shares.”
As per the reports, the tightening of global supplies has been a tailwind for the domestic rice exporter in the past few months. Even the recent volatility in the stock markets did not have any material impact on the stock price as it's only been rising up and up!