Stock manipulation: STL Global
Moneylife Digital Team 12 April 2017

STL Global Limited, formerly known Shivalik Global Ltd, has two business segments, viz., textiles and real estate. The textiles division contributed 78.80% of the total revenue and real estate division 21.20%. In the past eight years, the sales of the company have been declining and profits have turned into losses. It is incurring a loss even at the operating level. The reserves are negative and so are the returns.

However, the company’s stock rose by 1023%, to Rs13.03 on 3 April 2017, from Rs1.16 on 23 February 2015. This upmove was noticed by the BSE and it asked for a clarification in June 2016, to which the company responded that no price-sensitive information that would have caused the move had been released. The company’s reported profits in the March 2016 quarter would have resulted in price movement. However, this profit was only because of significant amount of ‘other income’; otherwise, the company reported a decline in year-on-year quarterly revenue of 3% and operating profit decline of 103%. For FY15-16, the company reported a decline in revenue of 13%. The humungous rise in stock price is still a question. Is it genuine investors who have high hopes from the company or a case of manipulation? Only time will tell. 

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