Oriental Veneer in UC since Friday

This Shahpur based company, Oriental Veneer, makes veneer, wood and decorate laminates and compressed boards. And it has been hitting the UC consistently since entire last week. Today too, it is locked at the UC of Rs.268.10, the same UC which it had breached on Friday – the stock is locked at the same price since Friday.

The reason for this euphoria is not really justified, if it is only about its Q3FY17 performance. On a 5% (YoY) drop in net sales at Rs.19 crore, thanks to the 5.5% reduction in total costs, the company could post a 53% rise in net profit at Rs1.99 crore v/s Rs.1.22 crore. Its 9MFy17 net profit of Rs.7 crore has more than surpassed FY16 net profit of Rs.4 crore – that could be the only probable reason for this UC.

Its equity is small at Rs.5.39 crore and annualized EPS is at Rs.17. Promoters hold 54.21% stake and even in non-promoter portion, in the non-institution part, they hold another 35%. This makes it a very illiquid share and we can see that from the 2W trading volume, which is around 1600 shares.