If an investor had invested ₹1 lakh in this textile stock one month ago, its ₹1 lakh would have turned to ₹3.60 lakh today. Despite showing weakness in the last three trading sessions, the price of AK Spintex stock has crossed a higher circuit of 5 percent during the previous 3 sessions, while opened yesterday with an upward gap of more than 4 percent.
In fact, the textile stock has become one of the few multi-dredging stocks in 2022 as it has increased from ₹27.95 (closing price on December 31, 2021, on BSE) to ₹80.90 (yesterday’s high on BSE), up about 190 percent in just 14 trading sessions as of the New Year 2022. In the company’s opinion, this rise in the stock price is completely ‘market-driven.’
Enquiry by BSE regarding sharp price rise of AK Spintex
- In response to the BSE question regarding the sharp upward swing in the AK Spintex share price in recent sessions, the company’s management replied: “With reference to your e-mail dated January 5, 2022 regarding clarification regarding price movements, we hereby state that the company has always disclosed to the exchange all material information affecting the company’s business/performance, including all necessary disclosures in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations , 2015 (the Listing Regulations’) within the allotted time.”
- AK Spintex replied to BSE, stating “We further state that we are not aware of the reason for any significant movement in the price of our shares. The movement in the share price is purely market-driven and can be a combination of several factors, including market conditions. We would like to reiterate that the company has always complied and will continue to adhere to the compliance required under the listing regulations and other applicable laws,”
Price History of AK Spintex
- This multi-bagger stock has remained sideways for near one year but has given sharp upside moves in the last month giving a stellar return to its shareholders. In the last one month, AK Spintex’s share price has shot up from ₹21.55 to ₹80.90 apiece levels, logging around 260 percent rise in this period.
AK Spintex Company
- As per the official website of AK Spintex, the company was originally incorporated as Private Limited Company in the name & style of “A.K. Processors Private Limited” on October 6, 1994 having object of Processing of man made fabrics. Later to expand the area of operation and to fulfill its Capital requirement the Company was converted as Public Limited Company on January 6, 1995. In eighties there were lots of opportunities in textile sector. The Government focused on textile development.To avail this opportunity the Company decided to start fabric processing business and the name of the Company was changed to “A.K. Spintex Limited” on February 24, 1995.
Impact on investments
In search of a multi-bagger stock in 2022, if an investor had invested ₹1 lakh in this stock a month ago, its ₹1 lakh would have turned into ₹3.60 lakh today.
- Although the stock has given a great return within just a month, this is not backed by its fundamentals. The Sales growth for the last 3 years of this company is negative ( –3.93 %), whereas Net Profit is decreasing since March, 18. Hence, putting your money in this stock is extremely risky.
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