Times Guaranty

This small cap NBFC company’s stock was locked in the 5% upper circuit yesterday at Rs.22.55 and that too with trade of just 750 shares only. The reason for this new found love for the stock – it declared its Q2Fy16 numbers yesterday and they were pitiable to say the least.

The company ended the quarter with a miniscule other income of Rs.5 lakh and net loss of less than Rs.2 lakh. Maybe the market is happy that the loss is lesser than the loss of Rs.6 lakh in previous Q2 or the Rs.4 lakh loss of Q1.  This is not to mention that the company has unabsorbed depreciation and carried forward losses which have not yet been accounted for. Thus given the size of the company’s operations, one cannot help but wonder why this upper circuit.

The only reason why it has even this fancy could be the parentage – 74.92% stake is held by Times of India promoters, Bennet Coleman & Company. Its equity is small at Rs.9 crore with nil Fixed Assets. Market cap stands at Rs.20 crore.