Khyati Multimedia surges 1000%, analysts advise caution

MUMBAI: Shares of little-known company Khyati Multimedia Entertainment surged more than 1,000% on Wednesday, before coming off the day's high. Market participants, however, advice caution while trading in such stocks as the surge is without any fundamental support.

At 11:40 am, the stock was trading at Rs 2.79, up 862% over its previous close. Earlier in the day, it touched a high of Rs 3.48.

The stock of Khyati Multimedia was last traded on Nov 21, 2008 when it closed at 29 paise. Interestingly, nearly 2 lakh shares were traded on that day. On Wednesday, more than 25,000 shares were traded in the first 90 minutes of the session.

Since not much is known about the company and its background, dealers expressed surprise when questioned about the sudden surge in the counter. The company filings clearly show that it did not register any income in the first nine months of the current financial year. For the quarter ended Dec 31, 2008, it reported a net loss of Rs 3.1 lakh.

According to the shareholding pattern of the company, promoters have a stake of 15.80%, while corporate bodies hold another 10%.