KGN relists after 7 years, zooms to Rs 55,000

Erratic movement was witnessed in KGN Industries counter today in which trading resumed after an earlier suspension.

After debuting at Rs 100, the stock scaled a high of a staggering Rs 55,000. The stock hit a low of Rs 72. The wild movement on the stock forced BSE to suspend trading in the stock for the day in afternoon trade. The stock last traded at Rs 15001 at 12:20 IST. A mere 827 shares were traded in the counter on BSE.

Since trading in the stock was to begin after an earlier suspension, BSE had decided not to impose daily circuit filters in the stock pertaining to today’s trading to facilitate price discovery.

But given that the earnings per share (EPS) is just Rs 0.68 for the year ended 31 March 2008, the price movement in the counter today has raised a lot of eyebrows. The stock was last traded at Rs 11.85 on 8 June 2001.

The company is in the business of trading in agro commodities like castor seeds, castor oil, castor oil derivatives etc. The company reported net profit of Rs 1.51 crore on net sales of Rs 186.57 crore in the year ended 31 March 2008