Spandana Sphoorty soars 18% as ex-MD Padmaja, board resolve differences

The company informed BSE, that its board and the founder and ex-MD Ms. Padmaja Reddy have resolved their differences and agreed to part ways on amicable terms.

Shares of Spandana Sphoorty Financial soared 18.5 per cent to Rs 395 on the BSE in Thursday’s intra-day trade after the company and Ms. Padmaja Reddy resolved their differences and agreed to part ways on amicable terms. The stock of the non-banking financial company has rallied over 37 per cent in past three trading days. In comparison, the S&P BSE Sensex was up 1.2 per cent at 52,435 points as of 11:00 AM.

Ms. Padmaja Reddy, the founder of Spandana Sphoorty Financial, resigned from her position as the Managing Director of the company on November 2, 2021. Subsequently, certain disputes arose between Ms. Padmaja Reddy and the board of directors of the company (Board).

“We are now pleased to inform you that the company and Ms. Reddy have resolved their differences and agreed to part ways on amicable terms,” the company said in a joint press release.

While Ms. Reddy is no longer serving as the Managing Director of the company, she continues to be a substantial shareholder and member of the company’s Board.

Needless to state, that the company and its board reiterate that they are committed to growing the company’s business with a view to take it to greater heights. Ms. Reddy continues to remain a well-wisher of Spandana and will extend all the required guidance and support, the statement said.

Despite the past three-day rally, the stock in the last one year has underperformed the market by falling 46 per cent, as compared to a marginal 0.27 per cent decline in the Sensex.

Meanwhile, the company has yet not announced its quarter and financial results for the financial year ended March 31, 2022. “While we will endeavor to declare the results at the earliest, the same will be submitted no later than June 30, 2022,” the company had said on May 30, 2022.

Technical View

Bias: Negative

Resistance: Rs 392.80

Support: Rs 350.50

The stock has rallied sharply by over 37 per cent from its recent low of Rs 286.65 in just three trading sessions. The sharp rebound has helped the stock cross its 20-DMA (Daily Moving Average) placed at Rs 350.50 and is seen now testing resistance around the 50-DMA and 100-DMA marks at Rs 392.80 and Rs 386.80, respectively.

While select momentum oscillators, like the 14-day RSI (Relative Strength Index), Directional Index and Stochastic Slow, have turned positive following the sharp pull-back, the overall trend remains negative on the price-to-moving average basis. The MACD has too has seen a positive crossover but remains below the zero line.

For the upward momentum to sustain, the stock needs to hold above its 20-DMA on a consistent basis, following which the stock can test Rs 405-odd level. On the flip side, in case the stock is unable to sustain above Rs 350.50, it can re-test its recent lows around Rs 290-odd level.

(With inputs from Rex Cano)