Shrenuj surges after announcing manpower rationalization

Shrenuj & Company was locked at 5% upper circuit at Rs 5.23 at 12:08 IST on BSE after the company announced that it has undertaken an exercise to rationalise its manpower across all levels.

The announcement was made after market hours yesterday, 21 June 2016.

Meanwhile, the S&P BSE Sensex was down 15 points or 0.06% at 26,797.78.

On BSE, so far 1.25 lakh shares were traded in the counter as against average daily volume of 3.77 lakh shares in the past one quarter. The stock opened with an upward gap of 5% and remained locked at 5% level so far during the day. The stock had hit a 52-week high of Rs 64.75 on 21 August 2015. The stock had hit a 52-week low of Rs 2.13 on 30 May 2016. The stock had outperformed the market over the past one month till 21 June 2016, advancing 74.48% compared with Sensex's 5.97% rise. The scrip had, however, underperformed the market in past one quarter, sliding 34.94% as against Sensex's 6.04% rise.

The small-cap company has equity capital of Rs 38.58 crore. Face value per share is Rs 2.

Shrenuj & Company said that as a part of strategy, the company has undertaken an exercise to rationalise its manpower across all levels. As a result, some of employees have started tendering their resignations, it said. Shrenuj said it is putting its every effort to retain the best talent in the organisation. Alternative strategies are being considered to overcome the current challenges, the company said.

Shrenuj & Company reported net loss of Rs 38.32 crore in Q4 March 2016, compared with net profit of Rs 2.50 crore in Q4 March 2015. Net sales declined 62.9% to Rs 304.16 crore in Q4 March 2016 over Q4 March 2015.

Shrenuj & Company manufactures and markets high quality polished diamonds and diamond jewellery products.

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