Kohinoor Foods turns multibagger as shares rise 700% since April
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Amidst high volatility in financial markets, shares of Kohinoor Foods have been on a bull run, especially in the past few months, as the company's shares accumulated multifold returns for its investors.
Stock prices ranging in single digit are known as penny stocks, and they typically have high volatility associated with them. On the other hand, multibagger stocks are those whose share prices rise exponentially over a short period of time.
Since April 6 when the ban on trading in the equity shares of Kohinoor Foods was revoked, the shares rose a little over 700 per cent to Rs 62 per share. In early April, the share price of the company was around Rs 8.
During the said period, it also witnessed multiple upper circuits.
The company deals in basmati rice, wheat flour, ready to eat curries and meals, simmer sauces, cooking pastes to spices, seasonings and frozen food, among others.
Upon having witnessed such a sharp movement in the share price, NSE sought clarifications from the company in April.
"We hereby further submit that we are not aware of the reason of significant movement in the price of our shares. The movement in the share price is purely market driven and may be combination of various factors including market conditions. The management of the company is in no way connected with the movement in the price of the shares," it said to the exchange in reply on April 19, 2022.
On the other hand, sensex lost over 5,000 points since early April as inflationary pressures have increased across the board on account of rising essential commodity and fuel prices.
