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'Shell companies': Analysis of 69 in Sebi list shows 10 firms have nil sales, one gave 338% return

The Securities and Exchange Board of India (Sebi) on 7 August 2017 forwarded a list of 331 suspected shell companies to the stock exchanges directing them to take corrective actions. Accordingly, the Bombay Stock Exchange (BSE) on 8 August placed 162 companies out of total 331 in the list, in the stage VI of the Graded Surveillance Measure (GSM) with immediate effect.

However, some of the companies are contesting the claims made by the Sebi and government. Some of the commentators have even raised doubts about the methodology adopted in preparing the list (read here and here).

Under the stage VI of GSM framework, trading in these identified securities shall be permitted only once a month under trade-to-trade category. Further, any upward price movement in these securities shall not be permitted beyond the last traded price and additional surveillance deposit of 200 percent of trade value shall be collected form the buyers which shall be retained with exchanges for a period for five months.

Representational image. Reuters

Representational image. Reuters

Out of these 162 firms, the Firstpost did an analysis of 69 companies for which data is available in CapitalinePlus. Out of the 69, three big firms' market capitalisation as on 7 August 2017 stood at over Rs 1,000 crore -- J Kumar Infra with a market capitalisation of Rs 2,146 crore, Prakash Industries (Rs 2,120 crore) and Parsvnath Developers (Rs 1,020 crore). As many as 13 companies had market valuation between Rs 100 crore and Rs 601 crore and 32 companies between Rs 10 crore and Rs 87 crore. There were 21 firms with market capitalisation below Rs 10 crore.

Out of these 69 stocks, 28 gave positive returns ranging between 0.46 percent and 338 percent over the last one year. As many as 40 companies saw their share prices declining between 1.85 percent and 90 percent.

The company that gave the top return of 338 percent was Cybermate Info. Its share price zoomed from a meagre 73 paise on 5 August 2016 to Rs 3.20 on 7 August 2017. Kavit Industries with 291 percent return stood second position and IFL Promoters third with 233 percent gain.

Silicon Valley, with a 90 percent decline in its share price, tops the list of losers. Gallant Ispat was the second major loser with 64 percent fall and ATN International at number three with a 61 percent decline in its share price.

Prakash Industries topped the net sales sweepstakes. In 2016-17, its sales stood at Rs 2,173.50 crore. Kkalpana Industries comes the second (Rs 1,957 crore) and J Kumar Infra the third (Rs 1,437 crore). Of the lot, as many as 16 firms had net sales of Rs 107-928 crore, 21 companies Rs 11-95 crore and 18 below Rs 10 crore. Surprisingly, 10 companies had zero net sales.

In terms of net profit, J Kumar Infra tops the list with Rs 105.51 crore profit, followed by Prakash Industries at Rs 81 crore and Pincon Spirit at Rs 43 crore.

As many as 35 made losses between Rs 4 lakh and Rs 976 crore. REI Agro was the top loss making firm with Rs 976 crore losses (2015-16) and Winsome Diamonds the second with Rs 836 crore (2016-17). It has to be remembered that Winsome is also one of the top wilful defaulters as per the bank unions' list. Rohit Ferro was the third in the list with Rs 336 crore loss for fiscal 2017.

Here is a list of 69 shell companies along with their one year stock performance.

BSE code Company Price (Rs) % change Market cap (Rs cr) Change Net sales Net profit Year
    5 Aug 2016 7 Aug 2017   5 Aug 2016 7 Aug 2017   Rs cr Rs cr
500024 Assam CO. (I) 6.50 6.53 0.5 201.34 202.27 0.93 211.61 -70.79 FY17
500329 Pentamedia Graph 0.76 0.72 -5.3 31.54 29.88 -1.66 3.92 0.94 FY17
502465 Special.Papers 0.78 0.40 -48.7 12.18 6.25 -5.93 0.16 -0.71 FY16
504351 Empower India 0.44 0.49 11.4 51.21 57.03 5.82 90.36 0.14 FY17
506022 Prakash Inds. 42.60 139.00 226.3 577.66 2119.86 1542.20 2173.50 81.00 FY17
507892 Winsome Diamonds 0.46 0.38 -17.4 4.90 4.05 -0.85 0.00 -836.02 FY17
509040 Netlink Solns(I) 6.30 7.65 21.4 1.87 2.27 0.40 3.20 0.55 FY17
509051 Indian Infotech 0.18 0.19 5.6 18.10 19.11 1.01 107.38 0.12 FY16
511092 JMD Ventures 1.53 3.11 103.3 22.08 44.87 22.79 61.24 -0.11 FY17
511427 ATN Intl. 0.49 0.19 -61.2 1.93 0.75 -1.18 0.00 -0.93 FY17
511525 Pan India Corpor 0.27 0.23 -14.8 5.79 4.93 -0.86 0.08 -0.56 FY17
511618 JIK Inds. 0.72 0.42 -41.7 5.23 3.05 -2.18 1.23 -1.00 FY17
511682 IFL Promoters 0.24 0.80 233.3 1.74 5.81 4.07 0.50 0.06 FY17
512131 Signet Indus. 20.15 11.17 -44.6 593.16 328.81 -264.35 928.39 19.30 FY17
512149 Avance Tech. 3.10 1.55 -50.0 61.44 30.72 -30.72 89.92 0.21 FY17
513502 Baroda Extrusion 0.34 0.31 -8.8 5.07 4.62 -0.45 13.95 -2.13 FY17
514221 K-Lifestyle 0.19 0.21 10.5 19.43 21.47 2.04 57.72 -56.16 FY17
517564 G R Cables 0.54 0.32 -40.7 1.56 0.92 -0.64 0.00 -0.19 FY17
521246 Paras Petrofils 0.21 0.17 -19.0 7.02 5.68 -1.34 0.00 0.02 FY16
523277 G V Films 0.80 0.93 16.3 29.49 34.28 4.79 0.00 -9.29 FY17
523467 Jai Mata Glass 0.19 0.24 26.3 1.90 2.40 0.50 0.00 8.26 FY17
524444 Kavit Industries 9.90 38.70 290.9 61.31 239.68 178.37 177.60 0.90 FY17
524488 SVC Superchem 0.75 0.79 5.3 12.23 12.88 0.65 0.00 0.00 FY15
526409 KKalpana Inds. 31.60 37.90 19.9 297.20 356.54 59.34 1957.27 25.74 FY17
526652 Cals Refineries 0.08 0.10 25.0 66.35 82.94 16.59 0.00 -1.07 FY17
530543 Marg 10.27 14.38 40.0 39.15 54.82 15.67 88.30 -26.89 FY17
530665 Zenith Health 0.79 0.46 -41.8 4.24 2.47 -1.77 4.79 -0.17 FY17
530703 Info-Drive Softw 0.27 0.16 -40.7 16.88 10.48 -6.40 21.67 0.22 FY17
530745 LN Industries 3.91 2.19 -44.0 39.76 22.27 -17.49 0.00 -3.29 FY17
531175 BLS Infotech 0.36 0.26 -27.8 15.76 11.38 -4.38 64.95 0.02 FY17
531337 Iris Mediaworks 13.99 19.00 35.8 139.84 189.92 50.08 94.63 0.12 FY17
531522 Rasoya Proteins 0.19 0.16 -15.8 32.47 27.34 -5.13 35.58 -24.27 FY17
531598 Nimbus Foods 0.95 0.44 -53.7 6.94 3.22 -3.72 12.31 0.19 FY17
531611 Aadhaar Ventures 1.20 0.63 -47.5 18.85 9.90 -8.95 9.24 0.06 FY17
531695 Veronica Product 1.90 0.94 -50.5 13.55 6.70 -6.85 10.97 -0.04 FY17
531703 Tribhuvan Hsg. 0.35 0.21 -40.0 1.75 1.05 -0.70 0.93 0.00 FY17
531738 Silicon Valley 0.29 0.03 -89.7 3.76 0.39 -3.37 0.70 -0.52 FY17
531845 Zenith Birla 0.67 0.53 -20.9 8.80 6.96 -1.84 85.84 -33.74 FY17
531855 Prabhav Ind 1.24 1.03 -16.9 5.72 4.75 -0.97 2.31 0.05 FY17
532106 REI Agro 0.54 0.25 -53.7 51.73 23.95 -27.78 521.80 -975.93 FY16
532127 Mobile Telecom. 2.61 3.00 14.9 36.40 41.84 5.44 152.63 -0.53 FY17
532271 Cybermate Info. 0.73 3.20 338.4 5.29 23.18 17.89 53.49 2.32 FY17
532275 Landmarc Leisur. 0.49 0.87 77.6 39.20 69.60 30.40 1.01 -4.57 FY17
532411 MPS Infotecnics 0.11 0.13 18.2 41.52 49.07 7.55 186.43 -1.12 FY17
532414 IKF Technolog. 0.75 0.70 -6.7 32.30 30.14 -2.16 57.58 -3.09 FY17
532614 Impex Ferro Tech 1.13 1.20 6.2 9.94 10.55 0.61 120.78 -107.11 FY17
532666 FCS Software 0.31 0.23 -25.8 53.00 39.32 -13.68 22.26 -1.88 FY17
532726 Gallantt Metal 43.45 39.50 -9.1 353.34 321.21 -32.13 616.73 27.10 FY17
532731 Rohit Ferro Tec. 4.69 4.87 3.8 53.36 55.41 2.05 658.49 -335.99 FY17
532780 Parsvnath Devl. 20.95 23.45 11.9 911.70 1020.50 108.80 249.42 -34.83 FY17
532870 Ankit Met.Power 1.93 1.38 -28.5 27.23 19.47 -7.76 21.97 -299.30 FY17
532919 Allied Computer. 0.70 0.55 -21.4 13.28 10.44 -2.84 35.78 0.12 FY17
532925 Kaushalya Infra. 5.76 3.01 -47.7 19.95 10.42 -9.53 0.57 -4.01 FY17
532940 J Kumar Infra 193.60 283.65 46.5 1464.88 2146.25 681.37 1437.50 105.51 FY17
532991 MVL 0.37 0.54 45.9 22.24 32.46 10.22 4.86 -2.03 FY17
532998 Lotus Eye Hospit 15.75 34.70 120.3 32.76 72.18 39.42 33.96 0.46 FY17
533006 Birla Cotsyn 0.08 0.08 0.0 21.35 21.35 0.00 89.95 -88.19 FY17
533015 Nu Tek India 0.62 0.76 22.6 9.58 11.74 2.16 39.23 1.87 FY17
533121 SQS India BFSI 921.75 501.55 -45.6 983.51 536.06 -447.45 259.90 22.30 FY17
533163 ARSS Infra 92.60 58.90 -36.4 137.42 87.41 -50.01 850.36 -330.63 FY17
533265 Gallantt Ispat 599.35 213.00 -64.5 1692.33 601.43 -1090.90 424.71 34.73 FY17
534707 Anshu's Clothing 3.34 1.52 -54.5 4.16 1.90 -2.26 0.16 -1.20 FY17
535694 eDynamics Solut. 5.71 6.64 16.3 13.37 16.97 3.60 2.51 0.03 FY17
538365 Adhunik Indus. 138.80 104.40 -24.8 649.08 488.21 -160.87 374.34 2.30 FY17
538422 Jackson Invest 7.65 3.69 -51.8 222.39 107.27 -115.12 4.33 0.03 FY17
538771 Pincon Spirit 73.00 71.65 -1.8 321.86 315.88 -5.98 1420.05 43.04 FY17
538787 Goenka Business 128.65 84.25 -34.5 167.25 109.53 -57.72 1.92 0.08 FY17
539123 V B Industries 375.80 344.65 -8.3 492.60 451.77 -40.83 121.42 0.06 FY17
590028 Nicco Corpn. 0.50 0.38 -24.0 6.85 5.20 -1.65 0.00 -27.07 FY17
Data source: CapitalinePlus

Published Date: Aug 09, 2017 14:55 PM | Updated Date: Aug 09, 2017 14:55 PM

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