The stock of Valencia Nutrition has logged stellar returns for investors in the last 10 days. Valencia Nutrition shares, which closed at Rs 10.95 on September 5, 2022, hit a 52-week high of Rs 21.25 on September 19, translating into gains of 94.05 per cent during the period. In comparison, Sensex has lost 0.72 per cent or 43 points during the period. An investment of Rs 1 lakh in the stock ten days ago would have grown to Rs 1.94 lakh today. The stock closed at Rs 19.32 in the previous session. It was stuck in the upper circuit of 10 per cent through the session today.
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A total of 3,000 shares of the firm changed hands, amounting to a turnover of Rs 0.63 lakh on the BSE. The market cap of the company rose to Rs 11.87 crore on BSE. Valencia Nutrition stock is trading higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
In Q1 of the previous fiscal, 91 public shareholders held 36.12 per cent stake or 20.17 lakh shares in the firm.12 promoters held 63.88 per cent stake or 35.67 lakh shares in the last quarter. 60 public shareholders held 2.56 lakh shares of the firm, amounting to a stake of 4.60 per cent with an individual share capital of up to Rs 2 lakh. 16 public shareholders held 11.42 lakh shares of the firm, amounting to a stake of 20.45 per cent with an individual share capital of over Rs 2 lakh.
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Weak Financials
The firm is yet to declare earnings for the quarter ended June 2022. It did not report earnings in the last fiscal too. According to half yearly earnings for period ended September 2021, the firm reported narrowing of losses by 86.70 per cent to Rs 0.25 crore against a loss of Rs 1.88 crore in the year ago period. The firm did not report sales during the period.
On the financial front, the performance of the stock is not satisfactory. Hence, one should consider the financials carefully before entering the counter. The financials of the firm do not support the stellar rally in the stock price.
The BSE recently sought a clarification on the sudden spurt in prices from the firm.
On September 15, the firm responded to the clarification note saying, “With reference to your email dated September 15, 2022 regarding clarification on price movement, we hereby submit that presently there is no event or material information, which has a bearing on the operations/ performance of the Company as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”). ‘We hereby further submit that the Company continuously adheres to the compliances required under the Listing Regulations and other applicable laws and ensures timely and accurate dissemination of reporting of all events and information under the law.”
About Valencia Nutrition
The company is focused on research, developing and marketing multi-nutrient functional beverages to prevent and/or manage lifestyle-related diseases. The company’s product includes Bounce Superdrinks’ & ‘Bounce Superwater VitaMe. The company’s segments include functional foods, functional beverages, dietary supplements and beverages. The Bounce Superdrinks’ is a low-calorie functional beverage that comes in a range of flavors, is loaded with nutrition. Bounce provides a range of products such as Prep and Roar.
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