Panasonic Home's 45% spurt sets off speculation
Panasonic Home's market capitalisation rose 40% during the period despite the stock having the lowest earnings per share and net profit among peers.
By HARISH RAO , ET Bureau | Updated:
MUMBAI: A sudden 45% surge in the shares of Panasonic Home Appliances in the past three days, at a time when the broader indices were down, has caught many traders off-guard.
Pacific Corporate Services, a holding company of Sanjay Dangi, who was banned from the market by Sebi for colluding with promoters of four companies to rig up share prices, owns 11% in Panasonic Home.
Panasonic Home's market capitalisation rose 40% during the period despite the stock having the lowest earnings per share and net profit among peers. For FY11, the company had EPS of 2.09 and a net profit of Rs 1.79 crore, with a price-to-earnings multiple of 55. This compares with an EPS of 12.77 for Hitachi and 73.88 for TTK Prestige.
There is a speculation that minority shareholders may be bought out, said a broker. Speculators usually target multinational company stocks believing that they may be delisted.
On Wednesday, the share closed at Rs 160.95, up 20% from the previous close. Volumes stood at more than thirty times its two-week average, which were a few hundred shares just a week before.
Pacific Corporate Services, a holding company of Sanjay Dangi, who was banned from the market by Sebi for colluding with promoters of four companies to rig up share prices, owns 11% in Panasonic Home.
Panasonic Home's market capitalisation rose 40% during the period despite the stock having the lowest earnings per share and net profit among peers. For FY11, the company had EPS of 2.09 and a net profit of Rs 1.79 crore, with a price-to-earnings multiple of 55. This compares with an EPS of 12.77 for Hitachi and 73.88 for TTK Prestige.
There is a speculation that minority shareholders may be bought out, said a broker. Speculators usually target multinational company stocks believing that they may be delisted.
On Wednesday, the share closed at Rs 160.95, up 20% from the previous close. Volumes stood at more than thirty times its two-week average, which were a few hundred shares just a week before.
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