'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 codeCompanyPrice (Rs)% changeMarket cap (Rs cr)ChangeNet salesNet profitYear
  5 Aug 20167 Aug 2017 5 Aug 20167 Aug 2017 Rs crRs cr
500024Assam CO. (I)6.506.530.5201.34202.270.93211.61-70.79FY17
500329Pentamedia Graph0.760.72-5.331.5429.88-1.663.920.94FY17
502465Special.Papers0.780.40-48.712.186.25-5.930.16-0.71FY16
504351Empower India0.440.4911.451.2157.035.8290.360.14FY17
506022Prakash Inds.42.60139.00226.3577.662119.861542.202173.5081.00FY17
507892Winsome Diamonds0.460.38-17.44.904.05-0.850.00-836.02FY17
509040Netlink Solns(I)6.307.6521.41.872.270.403.200.55FY17
509051Indian Infotech0.180.195.618.1019.111.01107.380.12FY16
511092JMD Ventures1.533.11103.322.0844.8722.7961.24-0.11FY17
511427ATN Intl.0.490.19-61.21.930.75-1.180.00-0.93FY17
511525Pan India Corpor0.270.23-14.85.794.93-0.860.08-0.56FY17
511618JIK Inds.0.720.42-41.75.233.05-2.181.23-1.00FY17
511682IFL Promoters0.240.80233.31.745.814.070.500.06FY17
512131Signet Indus.20.1511.17-44.6593.16328.81-264.35928.3919.30FY17
512149Avance Tech.3.101.55-50.061.4430.72-30.7289.920.21FY17
513502Baroda Extrusion0.340.31-8.85.074.62-0.4513.95-2.13FY17
514221K-Lifestyle0.190.2110.519.4321.472.0457.72-56.16FY17
517564G R Cables0.540.32-40.71.560.92-0.640.00-0.19FY17
521246Paras Petrofils0.210.17-19.07.025.68-1.340.000.02FY16
523277G V Films0.800.9316.329.4934.284.790.00-9.29FY17
523467Jai Mata Glass0.190.2426.31.902.400.500.008.26FY17
524444Kavit Industries9.9038.70290.961.31239.68178.37177.600.90FY17
524488SVC Superchem0.750.795.312.2312.880.650.000.00FY15
526409KKalpana Inds.31.6037.9019.9297.20356.5459.341957.2725.74FY17
526652Cals Refineries0.080.1025.066.3582.9416.590.00-1.07FY17
530543Marg10.2714.3840.039.1554.8215.6788.30-26.89FY17
530665Zenith Health0.790.46-41.84.242.47-1.774.79-0.17FY17
530703Info-Drive Softw0.270.16-40.716.8810.48-6.4021.670.22FY17
530745LN Industries3.912.19-44.039.7622.27-17.490.00-3.29FY17
531175BLS Infotech0.360.26-27.815.7611.38-4.3864.950.02FY17
531337Iris Mediaworks13.9919.0035.8139.84189.9250.0894.630.12FY17
531522Rasoya Proteins0.190.16-15.832.4727.34-5.1335.58-24.27FY17
531598Nimbus Foods0.950.44-53.76.943.22-3.7212.310.19FY17
531611Aadhaar Ventures1.200.63-47.518.859.90-8.959.240.06FY17
531695Veronica Product1.900.94-50.513.556.70-6.8510.97-0.04FY17
531703Tribhuvan Hsg.0.350.21-40.01.751.05-0.700.930.00FY17
531738Silicon Valley0.290.03-89.73.760.39-3.370.70-0.52FY17
531845Zenith Birla0.670.53-20.98.806.96-1.8485.84-33.74FY17
531855Prabhav Ind1.241.03-16.95.724.75-0.972.310.05FY17
532106REI Agro0.540.25-53.751.7323.95-27.78521.80-975.93FY16
532127Mobile Telecom.2.613.0014.936.4041.845.44152.63-0.53FY17
532271Cybermate Info.0.733.20338.45.2923.1817.8953.492.32FY17
532275Landmarc Leisur.0.490.8777.639.2069.6030.401.01-4.57FY17
532411MPS Infotecnics0.110.1318.241.5249.077.55186.43-1.12FY17
532414IKF Technolog.0.750.70-6.732.3030.14-2.1657.58-3.09FY17
532614Impex Ferro Tech1.131.206.29.9410.550.61120.78-107.11FY17
532666FCS Software0.310.23-25.853.0039.32-13.6822.26-1.88FY17
532726Gallantt Metal43.4539.50-9.1353.34321.21-32.13616.7327.10FY17
532731Rohit Ferro Tec.4.694.873.853.3655.412.05658.49-335.99FY17
532780Parsvnath Devl.20.9523.4511.9911.701020.50108.80249.42-34.83FY17
532870Ankit Met.Power1.931.38-28.527.2319.47-7.7621.97-299.30FY17
532919Allied Computer.0.700.55-21.413.2810.44-2.8435.780.12FY17
532925Kaushalya Infra.5.763.01-47.719.9510.42-9.530.57-4.01FY17
532940J Kumar Infra193.60283.6546.51464.882146.25681.371437.50105.51FY17
532991MVL0.370.5445.922.2432.4610.224.86-2.03FY17
532998Lotus Eye Hospit15.7534.70120.332.7672.1839.4233.960.46FY17
533006Birla Cotsyn0.080.080.021.3521.350.0089.95-88.19FY17
533015Nu Tek India0.620.7622.69.5811.742.1639.231.87FY17
533121SQS India BFSI921.75501.55-45.6983.51536.06-447.45259.9022.30FY17
533163ARSS Infra92.6058.90-36.4137.4287.41-50.01850.36-330.63FY17
533265Gallantt Ispat599.35213.00-64.51692.33601.43-1090.90424.7134.73FY17
534707Anshu's Clothing3.341.52-54.54.161.90-2.260.16-1.20FY17
535694eDynamics Solut.5.716.6416.313.3716.973.602.510.03FY17
538365Adhunik Indus.138.80104.40-24.8649.08488.21-160.87374.342.30FY17
538422Jackson Invest7.653.69-51.8222.39107.27-115.124.330.03FY17
538771Pincon Spirit73.0071.65-1.8321.86315.88-5.981420.0543.04FY17
538787Goenka Business128.6584.25-34.5167.25109.53-57.721.920.08FY17
539123V B Industries375.80344.65-8.3492.60451.77-40.83121.420.06FY17
590028Nicco Corpn.0.500.38-24.06.855.20-1.650.00-27.07FY17
Data source: CapitalinePlus

Published Date: Aug 09, 2017 02:55 pm | Updated Date: Aug 09, 2017 02:55 pm


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