Stock of this consumer electronics company has risen nearly 100% in 18 days

Shares of Calcom Vision were at the 5 per cent upper circuit for the 10th straight days, at Rs 113.90, also its record high on the BSE on Thursday, on the back of heavy volumes. In the past two weeks, the stock of the consumer electronics company has surged 63 per cent.

Trading volumes on the counter jumped an over 10-fold with 114,000 shares having changed hands and there were pending buy orders for 2,240 shares on the BSE at 11:50 am. In comparison, the S&P BSE Sensex was up 0.22 per cent at 57,913 points. Currently, the stock is classified in the XT category on the BSE. XT group consists of all those stocks which are only listed on BSE and are settled on a trade-to-trade basis.

The market price of Calcom Vision has nearly doubled, or is up 99 per cent, in less than a month (18 trading days) from a level of Rs 57.15 hit on November 22, 2021. From March 2020 low, the stock price of the company has skyrocketed 1,383 per cent from Rs 7.68 on the BSE.

On November 10, 2021, Calcom Vision had announced that the Company has been provisionally selected as a beneficiary under the Production Linked Incentive (PLI) scheme.

The Government of India had approved a PLI Scheme for white goods (including air conditioners and LED Lights) to be implemented over FY 2021- 22 till FY 2028-29 with a budgetary outlay of Rs 6,238 crore.

In order to participate and avail benefits under the PLI Scheme, the company had filed an application for the manufacturing of LED Drivers and LED Engines under the PLI scheme for white goods (air conditioners and led lights), the company had said in exchange filing.

Calcom Vision is an original designer & manufacturer for electronics and consumer durables. In 2009, Calcom diversified into lighting and developed a range of bulbs, luminaires and drivers. Now, Calcom is a fully integrated lighting manufacturer with factory located in Greater Noida, Delhi NCR.

For the first half (April-September) of the current financial year 2021-22 (H1FY22), the company had reduced its losses to Rs 38 lakh from Rs 1.22 crore in H1FY21. The company had posted net profit of Rs 1.05 crore during the entire previous financial year 2020-21.

Backed up supply chains globally, are leading to severe delays of raw materil availability. Freight costs have increased drastically and leading to uncertainty in the company's business plans. Again, the management expects the situation to improve after Q3 (Christmas and New Year sales).

The company, in its FY21 annual report, said it has decided to make a strategic shift to focus on low wattage bulbs in the product mix. The industry scenario is looking positive and the Company is expecting a good growth in revenue and profitability in the coming year in spite of the Covid-19 pandemic.