Shares of little known edible oil maker Vegetable Products Limited have surged a whopping 975 per cent or 11 times in calendar year 2021. The BSE-listed penny stock has been hitting upper circuit on a daily basis since November 25 and its circuit filter has been revised to 5 per cent from 20 per cent last month. In the last 27 sessions, the stock has surged 430 per cent.
The Kolkata-based Vegetable Products Limited makes plant-based edible oil and markets under the brand name of Pratap Vanaspati. The sharp surge in share price of Vegetable Products can be attributed to reduction in import duty by government following a surge in global commodity prices, analysts said.
Earlier this week, major edible oil producers reduced maximum retail prices of their products by 10-15 per cent to provide relief to consumers, industry body Solvent Extractors Association (SEA) said.
The government reduced import duty on December 20 when the basic customs duty on refined palm oil was brought down to 12.5 per cent from 17.5 per cent till the end of March 2022.
During the quarter ended September 2021, Vegetable Products clocked zero revenue from operations and its other income came in at Rs 8.27 lakh. The company posted net loss of Rs 18.23 crore in second quarter of current financial year.
In the first quarter of current fiscal, Vegetable Products posted profit of Rs 2.95 lakh on zero revenue from operations and Rs 9.25 lakh from revenue from other income.
The stock exchange on November 30 sought clarification from the company regarding price movement in its shares price and the company said that it was not aware of the reason of significant movement in the price of shares of the Company. "The movement in the share price is purely market driven and may be combination of various factors including market conditions," Vegetabl Products said in its clarification on November 30.
Vegetable Products share price was in very high demand as there were pending buy orders for 3.73 lakh shares while no sellers were seen on the BSE.