Everonn gains 75% after Citigroup buys stake

The stock has gained over 75 per cent in the last week after foreign fund Citigroup Global Markets Mauritius acquired 0.66 per cent stake in the firm.

The stock appreciated by 79 per cent from Rs 166.10 to Rs 296.55 on the Bombay Stock Exchange (BSE) has reported over 300 per cent jump in the combined trading volume.

Total 16.25 million equity shares changed hands last week as compared to 3.55 million shares that were traded the previous week.

Citigroup Global Markets Mauritius bought 1 lakh shares of the company at an average price of Rs 281.56 per share through a bulk deal on the BSE.

The stock has witnessed a solid surge in the past few days.

The small-cap stock outperformed the market over the past one week against 29 per cent rise in the small-cap index and the Sensex’s return of 14 per cent during the week.

The company is a leading satellite-based education service provider that has been in the education business for the last two decades.

The company had posted 163 per cent growth in net profit at Rs 19.09 crore (Rs 7.25 crore) during the first nine months (April-December 2008) of financial year 2008-09.

The current price of Rs 296.55 discounts the company’s trailing twelve months earnings per share (EPS) of Rs 17.12, by a price-to-earnings ratio (PE) multiple of 17.32.