This midcap stock rose 19% today, here's why

Shares of VIP Industries rose 19 per cent to hit a new 52-week high of Rs 459.20 after the company reported its earnings for the quarter ended June 2021.

The company reported a net profit of Rs 2.53 crore for the quarter ended June 2021 compared to a loss of Rs 51.32 in the year-ago period. Revenue from operations jumped to Rs 206.21 crore in the June-ended quarter against Rs 40.32 crore a year ago.

The stock opened 7.5 per cent higher at Rs 415.00 against the previous close of Rs 386.10. With a market capitalisation of Rs 6,410 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
 
It has gained 67 per cent in the last one year and risen 25 per cent since the beginning of this year.
 
"The company's operations and financial results for the period ended June 30, 2021, have been adversely impacted due to the temporary slowdown in its operations caused by fresh restrictions imposed due to the surge in COVID-19. The travel industry has been amongst the most affected segments in the economy since the outbreak of COVID 19," VIP Industries said.
 
"The company has been closely monitoring the changes in the economic conditions and its possible impact on its business. The company has already resumed operations across all locations including manufacturing plants and its supply chain functions," it added.
 
"Passenger traffic in June moved to 30 lakh from 21 lakh in May compared to June 2019 – passenger traffic has only managed to be at 25% levels ( 0.3 vs 1.2 crore in June 2019)," the company informed in its investor presentation.
 
As per the shareholding pattern for March 2021, Rekha Jhunjhunwala's stake fell to 2.32 per cent in the company against 5.32 per cent in the December 2020 quarter. Rakesh Jhunjhunwala held 22.85 lakh shares and 52.15 lakh shares, a total of 75 lakh shares or 5.31 per cent stake, through two accounts in the December 2020 quarter.
 
The company didn't show Rakesh Jhunjhunwala's shareholding as they are only allowed to report the shareholding details of investors holding over 1 per cent stake.
 
VIP Industries reported a consolidated net loss of Rs.3.78 crore for Q4 FY21 compared to a net profit of Rs 9.52 crore for the corresponding quarter of the previous year.