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KRBL extends rally on stake hike by promoters, stock surges 16%

Thus far in December the promoters of KRBL have purchased 4,48,500 equity shares or 0.43 per cent stake in the company

SI Reporter  |  Mumbai 

basmati rice

Shares of KRBL moved higher by 16 per cent to Rs 256 in the intra-day deals on Wednesday on the back of heavy volumes after its promoters increased their stake in the company through open market purchases.

The stock of the manufacturer of India Gate Basmati Rice was up 2 per cent on Tuesday. In comparison, the S&P BSE Sensex was up 0.47 per cent at 41,546 points at 01:08 pm.

The trading volumes on the counter jumped multiple-fold with a combined 1.45 million equity shares, representing 0.62 per cent of total equity of KRBL, changing hands on the NSE and BSE.

According to disclosures to the stock exchanges, thus far in December, the promoters of KRBL have purchased 4,48,500 equity shares or 0.43 per cent stake in the company though open market purchase.

Anil Mittal Family Trust, Arun Kumar Gupta Family Trust and Binita Gupta Family Trust have bought 149,500 equity shares each between December 3 and December 17, the exchange data shows. The names of the sellers are not ascertained immediately. CLICK HERE FOR FULL DETAILS

The stock of packaged foods company hit a 52-week low of Rs 187 on November 20, 2019. It plunged 52 per cent from its 52-week high level of Rs 391 touched on March 6, due to weak financial performance. The benchmark Sensex had rallied 10 per cent during the same period.

KRBL had posted 3 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 250 crore during first half (April-September) of the financial year 2019-20. The company’s consolidated operational revenue grew 6 per cent at Rs 2,108 crore on YoY basis.

The rating agency ICRA in November retained the company’s credit rating under watch due to the recent action of the Enforcement Directorate against the company and the ongoing investigations on the case. Any adverse development in this matter may impact the company’s operational profile. Therefore, ICRA will continue to monitor the developments in this regard.

Going forward, the developments on the aforesaid matter and KRBL’s ability to maintain its revenue growth and profitability amid competitive pressures, price volatility and changing import policies and practices of key Basmati rice importers, remain the key rating sensitivities, it added.

First Published: Wed, December 18 2019. 13:11 IST