Shares of EKI Energy Services jumped 10 per cent in Friday’s trade, snapping their losing run of seven straight sessions in a volatile trade. The stock slipped 10 per cent to hit a lower circuit — also its 52-week low — of Rs 511.95 over a previous close of Rs 568.80 in opening deals. Later in the trading hours, the scrip staged a sharp rebound and climbed 10 per cent to hit a day high (upper price band) of Rs 625.65.
A total of 5.60 lakh shares changed hands today on BSE, which was nearly eight times higher compared to EKI Energy’s two-week average volume of 73,000 shares. Turnover on the counter stood at Rs 32.54 crore, commanding a market capitalisation (m-cap) of Rs 1,721.23 crore. There were 92,621 buy orders today against sell orders of nil shares.
In terms of stock price, EKI Energy had tumbled 51.15 per cent in the past seven days after the company’s new auditor raised concerns over its financial statements. Walker Chandiok & Co allegedly cited non-compliance with accounting standards and revenue recognition norms. EKI Energy, however, refuted the allegations.
On the earnings front, EKI Energy posted a consolidated net profit of Rs 45.20 crore for the quarter that ended December 31, 2022 (Q3 FY23). Though, the exchange filing didn’t provide the consolidated net profit figure for the corresponding quarter of the previous fiscal. The consolidated net profit of the company stood at Rs 106.13 crore in the previous quarter that ended September 30, 2022 (Q2 FY23). The total income stood at Rs 421.12 crore in Q3 against Rs 461.15 crore in Q2.
The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 17.21. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-book (P/B) ratio of 2.81.
EKI Energy Services has a one-year beta of 0.37, indicating low volatility on the counter.
AR Ramachandran from Tips2trades said, “EKI Energy services stock price looks bearish with strong resistance at Rs 601. Investors should buy only if a close is above this level for targets of Rs 843-941. Support will be at Rs 512.”
The company (formerly known as EnKing International) is delivering a wide range of services, in the categories of training, consulting, Energy Conservation, Carbon Credit Trading, CDM and Electrical Safety Audit, Carbon Footprint measurement and management, and many more sustainability services. EKI has been working towards rehabilitating the planet to a future of net-zero carbon emissions.
Meanwhile, Indian equity benchmarks slipped in late deals today, dragged by banks, financials, technology and pharma stocks. As of 1:06 pm, the 30-share BSE Sensex pack fell 358 points or 0.58 per cent to trade at 60,961; while the broader NSE Nifty index moved 111 points or 0.61 per cent lower to trade at 17,925.
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