Shares of Sunflag Iron and Steel rallied more than 19% to hit an all-time high of ₹120 on the BSE today, driven by heavy volumes. The stock has risen as much as 42.5% in the last two sessions and, in contrast, the BSE Sensex fell over 3% during this period.
The smallcap stock has delivered robust returns to its investors in the recent past with share price jumping 60% in one month and 56% since the beginning of the calendar year. The stock price has soared 83% so far this month, with the share price surging from ₹66.05 on April 1 to ₹120 intraday today.
Given the strong surge in share price, the Bombay Stock Exchange (BSE) today sought clarification from Sunflag Iron regarding the significant movement in stock price to ensure that investors have relevant information about the company and their interest is safeguarded.
“The Exchange has sought clarification from Sunflag Iron & Steel Company Ltd on April 19, 2022, with reference to Movement in Volume,” the company said in a release.
Sunflag Iron in its clarification said that there was no information that may have an impact on the price or volume behavior in the scrip of the company. “With respect to your email seeking a response to the increase in the volume of the security of the company in recent past, we would like to inform that there is no information/announcement, which in our opinion may have a bearing on the price/volume behavior in the scrip of the company and which is yet to be disclosed to the Stock Exchanges and the increase in the share price/volume of the Company is purely due to market conditions and absolutely market driven.”
On Tuesday, Sunflag Iron shares opened 3.81% higher at ₹105 against the previous closing price of ₹101.15 on the BSE. The stock gained as much as 18.56% to hit an all-time high of ₹120, before settling at ₹108.50, up 7.3%. There was a surge in volume trade as 7.87 lakh shares worth ₹8.83 crore changed hands over the counter as compared to the two-week average volume of 2.83 lakh scrip. The market capitalisation of the company surged to ₹1,955.38 crore.
For the third quarter ended December 2021, the company posted net profit of ₹42.61 crore for the as against ₹46.89 crore profit in the year-ago period. The total income rose to ₹697.46 crore during the period ended December 31, 2021, compared to ₹651.54 crore in the corresponding period last year.
For the 9-month period ended December 31, 2021, the company reported net profit of ₹176.19 crore and revenue of ₹2,052.89 crore.
