Manpasand Beverages rebounds from record low; stock tanks 70% in one month

The stock locked in upper circuit of 5% at Rs 142, bouncing back 9.5% from its intra-day low, after the company said its board will meet on June 27 to consider Q4 results and to recommend dividend.

Shares of Manpasand Beverages are locked in upper circuit of 5% at Rs 142 per share, bouncing back 9.5% from their intra-day low on the BSE, after the company said that its board will meet on June 27, to consider audited financial results for the quarter and year ended March 31, 2018 and to recommend dividend.

The stock of the fruit juice maker hit a record low of Rs 129 in intra-day trade earlier today, and has tanked 70% in past one month, as compared to 4.4% rise in the S&P BSE Sensex. The stock hit an all-time high of Rs 512 on September 15, 2017 on the BSE in intra-day deal.

On May 26, 2018, Deloitte Haskins & Sells India had quit as the auditor to Manpasand Beverages a few days before the declaration of annual results for the year ended March 2018 on May 30. The auditor put their resignation due to lack of information provided the company for the purposes of audit of the financial results.

The board of directors of Manpasand Beverages upon the recommendation of the Audit Committee had appointed Mehra Goel & Co as statutory auditor of the company with effect from May 27, 2018 to fill the casual vacancy in the office of statutory auditors, who shall hold office as such till the conclusion of the ensuring Annual General Meeting (AGM).

For the first nine months (April to December) of the financial year 2017-18, Manpasand Beverages had posted 38% year on year jump in net profit at Rs 569 million, on back of 27% growth in operational revenue at Rs 5,704 million over the previous fiscal.

“Deloitte Haskins & Sells India has been auditors of the company since FY11. Contradictory statements have been made by the company and the auditors on the resignation have made us uncomfortable with the previous BUY rating. As a result, we put our rating UNDER REVIEW until we get clarity from Q4FY18 earnings and further update from the annual report of FY18,” analyst at Karvy Stock Broking said in post event update.

Till 01:18 pm; the trading volumes on Manpasand Beverages jumped nearly three-fold with a combined 4.41 million shares changed hands on the BSE and NSE. There were pending buy orders for 700,369 shares on both the exchanges.