Share of Gopala Polyplast has delivered 2,208% returns to its shareholders in one year. The stock, which closed at Rs 4.88 on August 5, 2020 ended at Rs 112.65 on BSE today. An amount of Rs 1 lakh invested in Gopala Polyplast stock a year ago would have turned into Rs 23.08 lakh today.
In comparison, Sensex has risen merely 44.68% during the period. Gopala Polyplast share has gained 1,688% since the beginning of this year and climbed 151.17% in one month.
The stock hit a fresh 52-week high today, rising 5% to Rs 112.65 on BSE today.
The share has gained 27.5% in the last 5 days. The stock opened with a gain of 4.99% and closed at the same level. It was stuck in upper circuit of 5% throughout the session.
Gopala Polyplast share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Total 100 shares changed hands amounting to turnover of Rs 0.11 lakh on BSE.Market cap of the firm surged to Rs 115 crore.
Promoters held 92.83% stake in the firm and public shareholders owned 7.17% at the end of June quarter. Bank of Baroda was the largest shareholder in the firm with 5% stake or 5.12 lakh shares. There were merely 3,682 shareholders with 1,38,833 shares who held individual capital up to Rs 2 lakh.
Three foreign portfolio investors held 23,369 shares at the end of June quarter.
Only 1 mutual fund held 6 shares of the firm in Q1.
In terms of financials, the firm reported a 491.32% rise in March quarter net profit at Rs 17.14 crore against loss of Rs 4.38 crore in the corresponding period of previous fiscal. However, net profit fell 65.33% from Rs 49.44 crore on a quarter on quarter basis.
On an annual basis, net profit rose 407% to Rs 63.62 crore for the fiscal ended March 2021 against Rs 20.70 crore loss for the fiscal ended March 2020.
Sales also zoomed 182% to Rs 15.87 crore in last fiscal against Rs 5.62 crore sales for the fiscal ended March 2020.
However, investors should consider the large promoter holding in the company which indicates the illiquidity of the shares available for purchase on the bourses.This may be one of the reasons behind the meteoric rise in the stock since same set of shares could be traded multiple times to lift the stock price.
Investors should also approach the stock with caution since the firm has remained in news for wrong reasons last year.
In December 2020, CBI booked Gopala Polyplast in case of a bank fraud worth Rs 72.55 crore.
The central agency registered a case against Gopala Polyplast on the basis of a complaint from Bank of Baroda alleging that accused directors of the firm-Manish Somani and Manoj Somani and Kishorilal Sonthalia-cheated the bank to the tune of Rs 72.55 crore between 2017 and 2019.
"It was alleged that during the period from 2017 to 2019, the company availed various credit facilities which were enhanced and reviewed by the bank. It was further alleged that the continuous overdraft in the account and devolvement of LCs (letters of credit) resulted in the account becoming NPA (non-performing asset)," CBI spokesperson RK Gaur said.
Before showing interest in the stock, investors should also consider that the firm has entered stage zero of insolvency resolution process.
Gopala Polyplast is a manufacturer of woven label and PP woven bag in India. Woven sacks are used for packaging in industries such as cement, fertilisers, sugar, chemicals and foodgrains among others.
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