This multi-bagger stock is down in the dumps now; Check why

Ashnisha Industries stock price has plunged over 53 per cent in the March quarter, with retail shareholding rising sharply to 82.65 per cent from 73.43 per cent.

Ashnisha Industries, a micro-cap company, with market capitalization of less than Rs 100 crore has witnessed a roller-coaster ride in the last one-and-half years. The stock rose like a phoenix in the first 10 months, only to falter in the following period.

A close evaluation of Ashnisha Industries stock price in relation with the company's earnings and shareholding pattern shows how the stock price fared over the last one year, and how retail investors may have burned their hands at the counter.

Ashnisha Industries, formerly known as Ashnisha Alloys, is engaged in the business of manufacturing and trading of steel and steel alloys. The stock trades only on the BSE in XT category, i.e. trade to trade. 

What happened so far...

Ashnisha Industries stock price rallied Rs 1.64 at the end of August 2022, to a high of Rs 25.72 per share in June 2023, i.e. an astounding 1468 per cent of near 16-fold returns in just 10 months.

Incidentally, at the peak of the rally, promoters of the company held around 27.11 per cent stake as of June 2023 quarter, shows BSE data. In the preceding quarter, i.e. for the quarter ended March 31, 2023, the company had reported a net profit of Rs 5 lakh on the back of 167 per cent YoY surge in total income to Rs 3.53 crore.

As of June 2023 end, the BSE shareholding pattern for Ashnisha Industries shows that retail investor, both with investments up to Rs 2 lakh and above Rs 2 lakh, held 72.87 per cent equity in the company. 

Notably, a corporate body, namely - Tiw Systems owned up to 16.5 per cent shares of Ashnisha Industries, and Aalps Commodities held 7 per cent stake as of June 30, 2023.

Thereafter, till the end of September 2023 quarter, the stock price consolidated in the price band of Rs 18 - 25, with a marginal rise seen in retail shareholding. Meanwhile, for the June quarter the company reported a net profit of Rs 30 lakh, up from Rs 5 lakh in the preceding quarter; but total income dipped 38.2 per cent QoQ to Rs 2.18 crore.

In the following September and December quarters, Ashnisha Industries reported a net profit of Rs 22 lakh and Rs 23 lakh, backed by a total income of Rs 2.04 crore and Rs 1.06 crore.

In the same six months, Ashnisha stock price plummeted by 41.5 per cent to Rs 13.06. Promoter holding declined from 27.11 per cent to 26.57 per cent. Retail holding rose from 72.87 per cent to 73.43 per cent. Among others, Tiw Systems reduced its holding from 16.51 per cent to 14.12 per cent, and Aalps Commodities from 7 per cent to 6.87 per cent.

The final nail?

In the recently concluded March quarter, BSE shareholding data shows that the promoter holding now stands at 17.35 per cent, down 9.22 per cent when compared with the preceding December quarter. On the other hand, retail investors now own 82.65 per cent of Ashnisha equity as against 73.43 per cent held earlier.

More notably, Tiw Systems and Aalps Commodities, who held 14.12 per stake and 6.87 per cent stake as of December quarter, reported Nil holdings at the end of March quarter.

As of Ashnisha Industries stock price, it plummeted to Rs 6.09 - down another 53.3 per cent in the quarter, and down a whopping 76.3 per cent from its peak of Rs 25.72 in June 2023.

Tech outlook

Technically, Ashnisha stock is trading with a bearish bias as it trades below its key moving averages on multiple time-frames. On the daily scale, the stock is seen testing its 20-DMA at Rs 6.95, with support seen around Rs 6.15 levels.

The weekly chart suggests, that the stock may consolidate in the range of Rs 6 - 8.75 before making its next move. Overall, the bias is expected to remain negative as long as the stock trades below Rs 12.50.