Himalaya Granites was engaged in manufacturing, producing and marketing of granites monuments, memorials and tombstones. The business was mismanaged; the situation was further aggravated by a labour strike followed by a lock-out in 2008. The management has been striving to chalk out a new sustainable venture; meanwhile, the company continues to let out part of its factory sheds and office space, to generate revenue and to abate the losses.
Since the company is not engaged in any business activity, there is no sales and plenty of operating and net losses. Strangely, the management announced a share buyback of Rs30 per share in January 2016, not exceeding seven lakh shares, representing 23.34% of the fully paid-up equity capital. There has been no announcement regarding any project after the buy back.
Despite such financials, the share of the company rose by 448% in less than two years, to Rs41.45 on 17 April 2017 from Rs7.57 on 15 July 2015. Why? Is it another case of converting investors’ black money into white? Only the regulator can tell. But will it investigate?