POLSON

Yesterday, Polson Ltd was frozen on the 5% upper circuit at Rs.1212.40, also a new 52-week high. It is a very thinly traded stock, with only 5 shares changing hands, which was enough the stock into the stratosphere. Market cap stands at Rs.14 crore. The stock has been hitting new highs for the past two days on hopes of delisting as promoters stake in the company stands at above the 75% stipulated mark of SEBI at 84.33%, which is just 1.01 lakh shares. With the deadline fast approaching, hope is also building up and traders are taking shots at such “high promoter” stake companies, hoping to make a killing.

This is a 113 year old company, started off as a coffee making company, later getting into diary and once the Govt reserved the sector for the co-operatives, the company was forced to quit dairy and got into speciality chemicals. Today, it is Asia’s largest manufacturer and exporter of natural based vegetable tannin extracts and Eco-friendly leather chemicals, with manufacturing facilities in Maharashtra. Financially, the company had ended Q3FY13 with a revenue of Rs.19 crore and net profit at Rs.2.30 crore. Its net profit for 9MFY13 was at Rs.4.62 crore as against Rs.4.42 crore for 12MFY`12. This means, it is certain that it would end FY13 on a much higher note. Equity stands at a meager Rs.60 lakh and reserves at end of Q3 was at a whopping Rs.28 crore. Its face value is Rs.50/share and EPS at end of Q3 was at Rs.385.