Stock of Gita Renewable Energy has delivered 4,097 per cent returns in one year. The stock, which closed at Rs 6.07 on October 29, 2020 rose to a high of Rs 254.80 on the Bombay Stock Exchange (BSE) today.
An amount of Rs 1 lakh invested in the shares of Gita Renewable Energy a year ago would have turned into Rs 41.97 lakh today. In comparison, Sensex has risen 50.74 per cent during the period.
The share hit a 52-week high of Rs 328.35 on October 26 this year. However, it has seen profit-booking since then.
It was stuck in the lower circuit of 5 per cent at Rs 254.80 on the BSE today. Market cap of the firm fell to Rs 104.78 crore. Gita Renewable Energy share has gained 3,703 per cent since the beginning of this year and climbed 86.39 per cent in one month.
The micro-cap stock has lost 14.47 per cent in a week. The stock opened with a loss of 5 per cent today.
Gita Renewable Energy share stands higher than 20-day, 50-day, 100-day and 200-day moving averages but lower than 5-day moving averages.
Total 235 shares changed hands amounting to turnover of Rs 0.59 lakh on BSE.
The stock is included under the second stage of Graded Surveillance Measures (GSM) mechanism on BSE. Under GSM, certain identified securities are subjected to enhanced monitoring and surveillance actions.
Market regulator Sebi has introduced the GSM mechanism to regulate trading of shares which see abnormal price rise not in line with the financial health or fundamentals.
In the second stage of GSM, a charge or the Additional Surveillance Deposit (ASD) equivalent to 100 per cent of the price of these shares is applicable for trading. The ASD will be deposited with the stock exchange for 5 months.
Promoters held 73.05 per cent stake in the firm and public shareholders owned 26.95 per cent at the end of September quarter.
5,668 public shareholders owned 11.08 lakh shares of the firm. Of these, 5,422 shareholders held stake with capital up to Rs 2 lakh. Only three shareholders with 2.45% stake held capital above Rs 2 lakh at the end of September quarter.
The share of the Tamil Nadu-based firm has outperformed its peers in the last one year.
While Ravindra Energy share has risen 97 per cent, stock of another competitor Urja Global has gained 50.8 per cent in one year. Share of Orient Green Power Company has climbed 114.49 per cent in one year.
However, the phenomenal rise in the stock of Gita Renewable Energy does not reflect the financial performance of the firm. The firm has been incurring losses continuously since quarter ended September 2017 except in the March and June 2021 quarter.
In the March quarter, it reported a profit of Rs 15 lakh. For the quarter ended June, the company posted a profit of Rs 36 lakh.
In fact, over the past five years, the firm's historical annual earnings growth has been in the negative, at -63 per cent.
The company reported a 176.60 per cent rise in net profit for June quarter in 2021 when it reported Rs 36 lakh profit against a loss of Rs 47 lakh in the corresponding quarter of previous fiscal.
On a quarter-on-quarter basis, net profit rose 140 per cent from Rs 15 lakh loss in the March quarter of last fiscal.
Sales stood at Rs 6 lakh in June quarter, unchanged from the March quarter.Gita Renewable Energy is engaged in producing power from renewable resources including wind, solar and hydro. The company was incorporated in 2010 and is based in Gummidipoondi, Tamil Nadu.
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