Indian stock markets are on an upswing of late, with the benchmark Sensex and Nifty rising 21-22% since so far this year since January 2017. Investors’ attraction towards Indian equities has helped the NSE Nifty 50 hit a long-awaited five-digit figure of 10,000 points recently, while the 30-share barometer BSE Sensex has rode past 30,600 points. As for the last six months, both the indices have returned a handsome 15%-16%, which is also a good enough return. However, a comparison with some other stocks may make even Sensex and Nifty returns look puny this year.
One such stock is Indiabulls Ventures Ltd, which has grown unimaginably at an exponential pace, rising by a staggering 10 times in just last six months. This means that a sum of Rs 10,000 invested in Indiabulls Ventures six months ago would be close to Rs 1,00,000 now. Interestingly, this small cap stock was trading around Rs 20 six months back, which is an inexpensive price for owning a share and to take a sizeable position. As on 31 January 2017, shares of Indiabulls Ventures quoted at Rs 20.25, while on 1 August 2017, the stock closed at Rs 195.1, rising 963%, or 9.63 times during the six-month period.
The stock of Indiabulls Ventures on Wednesday rose 1.42% to Rs 196.25 while the benchmark Sensex hovers in negative territory, down 0.06% at 32,556.34 points. Indiabulls Ventures recently reported a decline of 23.09% in net profit to Rs 16.09 crore in the April-June quarter as against Rs 20.92 crore during the previous year for the same period while sales for the quarter ended in June rose 53.69% to Rs 27.31 crore.
Earlier in March 2017, the company had signed an agreement to sell its 100% shareholding in India Land and Properties Ltd at Rs 685 crore to Indiabulls Infrastructure Ltd which fuelled up the share prices. In a recent conversation last month, Prakash Gaba Technical Analyst at prakashgaba.com told CNBC TV 18, “ Indiabulls Ventures still not given a sell. It has seen some kind of a selling pressure in the upper regions closer to Rs 200, so it might trade sideways.”
Indiabulls Ventures Limited is a financial services company providing securities, commodities and currency broking services. It is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange.