Dairy News 7x7 logo

Safe Milk Labs

Prabhat Dairy share price up 13%

Prabhat Dairy’s share price surged 13 percent in the morning session on October 21, a day after the market regulator SEBI pulled up the company for not cooperating with the forensic auditor and asked it to deposit Rs 1,292 crore in a nationalised bank within seven days till the conclusion of the audit.

The stock has gained over 13 percent in the last three days and was trading at Rs 55.30, up Rs 6.65, or 13.67 percent. It has touched an intraday high of Rs 58.35 and an intraday low of Rs 51.40.

The Securities and Exchange Board of India in July appointed Grant Thornton Bharat LLP as the forensic auditor to ascertain facts about the firm’s statements for the financial years ending March 31, 2019 and March 31, 2020.

Also read : SEBI pulled up Prabhat dairy on forensic audit

The stock witnessed a spike in volume by more than 2.29 times and was trading with volumes of 28,960 shares, compared to its five-day average of 9,929 shares, an increase of 191.66 percent.

Board Approval

In January 2019, Prabhat Dairy informed bourses that its board has approved the sale of the firm’s shareholding in its wholly-owned step-down subsidiary Sunfresh Agro Industries Pvt Ltd to Tirumala Milk Products Pvt Ltd for nearly Rs 1,227 crore. It also approved the sale and transfer of its dairy product business for about Rs 473 crore.

The transactions, as per the firm’s regulatory filings, were completed in April 2019. In September 2019, the firm said certain promoters intended to acquire a 49.9 percent stake held by the public shareholders and consequently voluntarily delist the company’s shares from the exchanges.

According to Moneycontrol SWOT Analysis powered by Trendlyne, the company has a decreasing promoter pledge with book value per share improving for the last two years.

However, Moneycontrol technical rating is very bearish with moving averages and technical indicators being bearish.

Advertisement · Scroll to continue
Share :

Read Next

Sorry, your ID is maybe not correct (If you did not place any ID that means auto-detect does not work.). And please make sure that your selected element is developed with Swiper.