At a time when the equity market is witnessing high volatility due to rising inflation, policy tightening, and sustained selling by foreign investors, some stocks have turned multibagger and delivered multifold returns to investors. Rice milling company Kohinoor Foods is one such stock that has risen more than 800% in just two months compared with 11% decline in the BSE benchmark Sensex. Precisely, the penny stock has surged 813% in two months, with share price rising from its 52-week low of ₹7.77 on April 6, 2022, to ₹70.95 in intraday today.
If you had invested ₹1 lakh in the stock at ₹7.77 apiece in April this year, it would have become ₹9.13 lakh today.
Outperforming the benchmark indices, the stock has been gaining for the last 47 sessions and has hit 5% upper circuit during this period. The equity shares of Kohinoor Foods resumed trading on April 6, 2022, after the exchange revoked suspension of trading in the security. Before this, the stock had last traded on May 3, 2021, after which the exchange suspended the equity shares of Kohinoor Foods for non-compliance with listing obligation and disclosure requirements as per SEBI Regulations, 2015.
Kohinoor Foods currently trades under the T group on the BSE and under the BE (book entry) category on the NSE. Shares falling in the BE segment have to be settled by accepting or giving the delivery of shares and no intraday netting of positions is allowed.
The agricultural products company is engaged in the business of manufacturing, trading and marketing of food products. It sells a wide range of basmati rice under the brand name 'Kohinoor' in several countries such as the U.S.A., U.A.E., Canada, Australia, Middle East, Singapore, Japan, Mauritius and other European countries. Among others, it sells ready to eat curries and meals, readymade gravies, cooking pastes, chutney's, spices and seasonings to frozen breads, snacks, healthy grains, and edible oils.
Last month, Adani Group firm Adani Wilmar signed a deal with McCormick Switzerland GMBH to acquire several brands including the renowned “Kohinoor” for an undisclosed amount. The deal includes ‘Kohinoor’ basmati rice along with ‘ready to cook’, ‘ready to eat’ curries and meals under the Kohinoor Brand umbrella in India. The brand portfolio comprises “Kohinoor” for premium Basmati rice, “Charminar” for affordable rice, and “Trophy” for the hotels, restaurants, and catering (HORECA) segment.
