Back-to-back upper circuits- How PM Modi's Melody to Meloni is sweetening up this stock

Shares of Parle Industries hit upper circuit for the second straight session today led by strong buying momentum. The rally in the stock comes after investors reacted to the “Melody” moment that went viral online involving Prime Minister Narendra Modi and his Italian counterpart Giorgia Meloni. However, the small cap penny stock is not related to melody toffee or the other products from the FMCG major Parle Products, which is not listed on bourses. Mumbai-based Parle Products is known for its famous products such as Parle-G biscuits, Monaco biscuits, Hide & Seek, and Mango Bite toffee. 

On the other hand, Parle Industries, the stock gaining momentum and headlines from Modi's melody moment is a completely different entity from Parle Products. 

Parle Industries is engaged in the business of infrastructure and real estate development. It also trades in paper, paper waste, and related recycling products. 

An ANI report on Wednesday cited Parle Vice President Mayank Shah saying that it has no connection with BSE-listed Parle Industries, which is engaged in construction. Parle Products said investors may have mistakenly linked Parle Industries with the Melody toffee brand, leading to the stock's sharp rise

In an interaction with Business Today after the brand went viral, Parle Vice President Mayank Shah said, “We expect the growth to accelerate. It's a brand that's growing very well, and we would further see acceleration in growth.”

“It's the largest toffee brand of India, so the kind of growth that you would be seeing would be huge,” Shah added.

He said the rise in demand could come from across global markets as Melody is already available in nearly 100 countries. “Since morning, we have been getting suggestions like, 'Why don't you call it the national toffee brand or national toffee of India?'” Shah said.

Meanwhile, Parle Industries stock rose 5% for the second straight day and was stuck in the upper circuit at Rs 5.51 today. Market cap of the firm rose to Rs 26.91 crore. The stock hit an upper circuit of 5% on Wednesday too, rising to a high of Rs 5.25 and closing at the same level.