Tree House Education hits record low on heavy volumes

The stock hit a record low of Rs 24.25, down 19% on the NSE on back of heavy volumes

Tree House Education & Accessories hit record low of Rs 24.25, down 19% on the National Stock Exchange (NSE) on back of heavy volumes after media report suggested that the preschool chain, TreeHouse Playgroup is likely to shut its branches.

“The Exchange has sought clarification from Tree House Education & Accessories Ltd on December 16, 2016 with reference to news appeared in Mumbai Mirror dated December 16, 2016 quoting "Mired in a financial mess, several branches of Treehouse Playgroup ask children to go back,” according to BSE website.

The reply is awaited.

The company engaged in education services business had posted a net loss of Rs 93 crore for the first half (April to September) of the current financial year 2016-17, against profit of Rs 31 crore in the same period last fiscal.

The stock tanked 96% from its record high of Rs 548 touched on February 16, 2015.

At 11:36 am; it was trading at Rs 24.60, down 17% on the NSE, as compared to 0.16% decline in the Nifty 50 index. A combined 1.82 million shares changed hands on the counter so far against an average sub one million shares that were traded daily in past two weeks on the NSE and BSE.