Rajkumar Forge manufactures medium and heavy open-die forgings for the oil, gas, power, iron, steel, sugar, cement, chemicals, fertiliser and general engineering industries. It claims to be one of the leading exporters of critical forgings and has a presence in South East Asian markets.
According to Watchout Investors, in 2007, the company did not comply with the listing agreement of the BSE and was suspended from trading. The suspension was later revoked. In the same year, a penalty of Rs1 lakh was also levied on the company for delay in making disclosures of shareholding and changes in shareholding. The promoters hold only 3.5% shares in the company which is unusually low. The net sales for the December 2016 quarter fell by 57% year-on-year, from Rs2.61 crore in the December 2015 quarter to Rs1.13 crore in the December 2016 quarter.
Over the past eight quarters, sales have been stagnant. The company reported a net loss Rs0.52 crore in the December 2015 quarter and a loss of Rs1.41 crore in the December 2016 quarter. Yet, the stock price shot up 315%, from Rs15.05 on 27 March 2015 to Rs62.45 on 17 May 2017. Does anybody know why?
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam