List of Fake companies – Must be avoided
Source – http://www.firstpost.com/business/shell-companies-analysis-of-69-in-sebi-list-shows-10-firms-have-nil-sales-one-gave-338-return-3910121.html
The Securities and Exchange Board of India (Sebi) on 7 August 2017 forwarded a list of 331 suspected shell companies to the stock exchanges directing them to take corrective actions. Accordingly, the Bombay Stock Exchange (BSE) on 8 August placed 162 companies out of total 331 in the list, in the stage VI of the Graded Surveillance Measure (GSM) with immediate effect.
However, some of the companies are contesting the claims made by the Sebi and government. Some of the commentators have even raised doubts about the methodology adopted in preparing the list (read here and here).
Under the stage VI of GSM framework, trading in these identified securities shall be permitted only once a month under trade-to-trade category. Further, any upward price movement in these securities shall not be permitted beyond the last traded price and additional surveillance deposit of 200 percent of trade value shall be collected form the buyers which shall be retained with exchanges for a period for five months.
Out of these 162 firms, the Firstpost did an analysis of 69 companies for which data is available in CapitalinePlus. Out of the 69, three big firms’ market capitalisation as on 7 August 2017 stood at over Rs 1,000 crore — J Kumar Infra with a market capitalisation of Rs 2,146 crore, Prakash Industries (Rs 2,120 crore) and Parsvnath Developers (Rs 1,020 crore). As many as 13 companies had market valuation between Rs 100 crore and Rs 601 crore and 32 companies between Rs 10 crore and Rs 87 crore. There were 21 firms with market capitalisation below Rs 10 crore.
Out of these 69 stocks, 28 gave positive returns ranging between 0.46 percent and 338 percent over the last one year. As many as 40 companies saw their share prices declining between 1.85 percent and 90 percent.
The company that gave the top return of 338 percent was Cybermate Info. Its share price zoomed from a meagre 73 paise on 5 August 2016 to Rs 3.20 on 7 August 2017. Kavit Industries with 291 percent return stood second position and IFL Promoters third with 233 percent gain.
Silicon Valley, with a 90 percent decline in its share price, tops the list of losers. Gallant Ispat was the second major loser with 64 percent fall and ATN International at number three with a 61 percent decline in its share price.
Prakash Industries topped the net sales sweepstakes. In 2016-17, its sales stood at Rs 2,173.50 crore. Kkalpana Industries comes the second (Rs 1,957 crore) and J Kumar Infra the third (Rs 1,437 crore). Of the lot, as many as 16 firms had net sales of Rs 107-928 crore, 21 companies Rs 11-95 crore and 18 below Rs 10 crore. Surprisingly, 10 companies had zero net sales.
In terms of net profit, J Kumar Infra tops the list with Rs 105.51 crore profit, followed by Prakash Industries at Rs 81 crore and Pincon Spirit at Rs 43 crore.
As many as 35 made losses between Rs 4 lakh and Rs 976 crore. REI Agro was the top loss making firm with Rs 976 crore losses (2015-16) and Winsome Diamonds the second with Rs 836 crore (2016-17). It has to be remembered that Winsome is also one of the top wilful defaulters as per the bank unions’ list. Rohit Ferro was the third in the list with Rs 336 crore loss for fiscal 2017.
Here is a list of 69 shell companies along with their one year stock performance.
| BSE code | Company | Price (Rs) | % change | Market cap (Rs cr) | Change | Net sales | Net profit | Year | ||
| 5 Aug 2016 | 7 Aug 2017 | 5 Aug 2016 | 7 Aug 2017 | Rs cr | Rs cr | |||||
| 500024 | Assam CO. (I) | 6.50 | 6.53 | 0.5 | 201.34 | 202.27 | 0.93 | 211.61 | -70.79 | FY17 |
| 500329 | Pentamedia Graph | 0.76 | 0.72 | -5.3 | 31.54 | 29.88 | -1.66 | 3.92 | 0.94 | FY17 |
| 502465 | Special.Papers | 0.78 | 0.40 | -48.7 | 12.18 | 6.25 | -5.93 | 0.16 | -0.71 | FY16 |
| 504351 | Empower India | 0.44 | 0.49 | 11.4 | 51.21 | 57.03 | 5.82 | 90.36 | 0.14 | FY17 |
| 506022 | Prakash Inds. | 42.60 | 139.00 | 226.3 | 577.66 | 2119.86 | 1542.20 | 2173.50 | 81.00 | FY17 |
| 507892 | Winsome Diamonds | 0.46 | 0.38 | -17.4 | 4.90 | 4.05 | -0.85 | 0.00 | -836.02 | FY17 |
| 509040 | Netlink Solns(I) | 6.30 | 7.65 | 21.4 | 1.87 | 2.27 | 0.40 | 3.20 | 0.55 | FY17 |
| 509051 | Indian Infotech | 0.18 | 0.19 | 5.6 | 18.10 | 19.11 | 1.01 | 107.38 | 0.12 | FY16 |
| 511092 | JMD Ventures | 1.53 | 3.11 | 103.3 | 22.08 | 44.87 | 22.79 | 61.24 | -0.11 | FY17 |
| 511427 | ATN Intl. | 0.49 | 0.19 | -61.2 | 1.93 | 0.75 | -1.18 | 0.00 | -0.93 | FY17 |
| 511525 | Pan India Corpor | 0.27 | 0.23 | -14.8 | 5.79 | 4.93 | -0.86 | 0.08 | -0.56 | FY17 |
| 511618 | JIK Inds. | 0.72 | 0.42 | -41.7 | 5.23 | 3.05 | -2.18 | 1.23 | -1.00 | FY17 |
| 511682 | IFL Promoters | 0.24 | 0.80 | 233.3 | 1.74 | 5.81 | 4.07 | 0.50 | 0.06 | FY17 |
| 512131 | Signet Indus. | 20.15 | 11.17 | -44.6 | 593.16 | 328.81 | -264.35 | 928.39 | 19.30 | FY17 |
| 512149 | Avance Tech. | 3.10 | 1.55 | -50.0 | 61.44 | 30.72 | -30.72 | 89.92 | 0.21 | FY17 |
| 513502 | Baroda Extrusion | 0.34 | 0.31 | -8.8 | 5.07 | 4.62 | -0.45 | 13.95 | -2.13 | FY17 |
| 514221 | K-Lifestyle | 0.19 | 0.21 | 10.5 | 19.43 | 21.47 | 2.04 | 57.72 | -56.16 | FY17 |
| 517564 | G R Cables | 0.54 | 0.32 | -40.7 | 1.56 | 0.92 | -0.64 | 0.00 | -0.19 | FY17 |
| 521246 | Paras Petrofils | 0.21 | 0.17 | -19.0 | 7.02 | 5.68 | -1.34 | 0.00 | 0.02 | FY16 |
| 523277 | G V Films | 0.80 | 0.93 | 16.3 | 29.49 | 34.28 | 4.79 | 0.00 | -9.29 | FY17 |
| 523467 | Jai Mata Glass | 0.19 | 0.24 | 26.3 | 1.90 | 2.40 | 0.50 | 0.00 | 8.26 | FY17 |
| 524444 | Kavit Industries | 9.90 | 38.70 | 290.9 | 61.31 | 239.68 | 178.37 | 177.60 | 0.90 | FY17 |
| 524488 | SVC Superchem | 0.75 | 0.79 | 5.3 | 12.23 | 12.88 | 0.65 | 0.00 | 0.00 | FY15 |
| 526409 | KKalpana Inds. | 31.60 | 37.90 | 19.9 | 297.20 | 356.54 | 59.34 | 1957.27 | 25.74 | FY17 |
| 526652 | Cals Refineries | 0.08 | 0.10 | 25.0 | 66.35 | 82.94 | 16.59 | 0.00 | -1.07 | FY17 |
| 530543 | Marg | 10.27 | 14.38 | 40.0 | 39.15 | 54.82 | 15.67 | 88.30 | -26.89 | FY17 |
| 530665 | Zenith Health | 0.79 | 0.46 | -41.8 | 4.24 | 2.47 | -1.77 | 4.79 | -0.17 | FY17 |
| 530703 | Info-Drive Softw | 0.27 | 0.16 | -40.7 | 16.88 | 10.48 | -6.40 | 21.67 | 0.22 | FY17 |
| 530745 | LN Industries | 3.91 | 2.19 | -44.0 | 39.76 | 22.27 | -17.49 | 0.00 | -3.29 | FY17 |
| 531175 | BLS Infotech | 0.36 | 0.26 | -27.8 | 15.76 | 11.38 | -4.38 | 64.95 | 0.02 | FY17 |
| 531337 | Iris Mediaworks | 13.99 | 19.00 | 35.8 | 139.84 | 189.92 | 50.08 | 94.63 | 0.12 | FY17 |
| 531522 | Rasoya Proteins | 0.19 | 0.16 | -15.8 | 32.47 | 27.34 | -5.13 | 35.58 | -24.27 | FY17 |
| 531598 | Nimbus Foods | 0.95 | 0.44 | -53.7 | 6.94 | 3.22 | -3.72 | 12.31 | 0.19 | FY17 |
| 531611 | Aadhaar Ventures | 1.20 | 0.63 | -47.5 | 18.85 | 9.90 | -8.95 | 9.24 | 0.06 | FY17 |
| 531695 | Veronica Product | 1.90 | 0.94 | -50.5 | 13.55 | 6.70 | -6.85 | 10.97 | -0.04 | FY17 |
| 531703 | Tribhuvan Hsg. | 0.35 | 0.21 | -40.0 | 1.75 | 1.05 | -0.70 | 0.93 | 0.00 | FY17 |
| 531738 | Silicon Valley | 0.29 | 0.03 | -89.7 | 3.76 | 0.39 | -3.37 | 0.70 | -0.52 | FY17 |
| 531845 | Zenith Birla | 0.67 | 0.53 | -20.9 | 8.80 | 6.96 | -1.84 | 85.84 | -33.74 | FY17 |
| 531855 | Prabhav Ind | 1.24 | 1.03 | -16.9 | 5.72 | 4.75 | -0.97 | 2.31 | 0.05 | FY17 |
| 532106 | REI Agro | 0.54 | 0.25 | -53.7 | 51.73 | 23.95 | -27.78 | 521.80 | -975.93 | FY16 |
| 532127 | Mobile Telecom. | 2.61 | 3.00 | 14.9 | 36.40 | 41.84 | 5.44 | 152.63 | -0.53 | FY17 |
| 532271 | Cybermate Info. | 0.73 | 3.20 | 338.4 | 5.29 | 23.18 | 17.89 | 53.49 | 2.32 | FY17 |
| 532275 | Landmarc Leisur. | 0.49 | 0.87 | 77.6 | 39.20 | 69.60 | 30.40 | 1.01 | -4.57 | FY17 |
| 532411 | MPS Infotecnics | 0.11 | 0.13 | 18.2 | 41.52 | 49.07 | 7.55 | 186.43 | -1.12 | FY17 |
| 532414 | IKF Technolog. | 0.75 | 0.70 | -6.7 | 32.30 | 30.14 | -2.16 | 57.58 | -3.09 | FY17 |
| 532614 | Impex Ferro Tech | 1.13 | 1.20 | 6.2 | 9.94 | 10.55 | 0.61 | 120.78 | -107.11 | FY17 |
| 532666 | FCS Software | 0.31 | 0.23 | -25.8 | 53.00 | 39.32 | -13.68 | 22.26 | -1.88 | FY17 |
| 532726 | Gallantt Metal | 43.45 | 39.50 | -9.1 | 353.34 | 321.21 | -32.13 | 616.73 | 27.10 | FY17 |
| 532731 | Rohit Ferro Tec. | 4.69 | 4.87 | 3.8 | 53.36 | 55.41 | 2.05 | 658.49 | -335.99 | FY17 |
| 532780 | Parsvnath Devl. | 20.95 | 23.45 | 11.9 | 911.70 | 1020.50 | 108.80 | 249.42 | -34.83 | FY17 |
| 532870 | Ankit Met.Power | 1.93 | 1.38 | -28.5 | 27.23 | 19.47 | -7.76 | 21.97 | -299.30 | FY17 |
| 532919 | Allied Computer. | 0.70 | 0.55 | -21.4 | 13.28 | 10.44 | -2.84 | 35.78 | 0.12 | FY17 |
| 532925 | Kaushalya Infra. | 5.76 | 3.01 | -47.7 | 19.95 | 10.42 | -9.53 | 0.57 | -4.01 | FY17 |
| 532940 | J Kumar Infra | 193.60 | 283.65 | 46.5 | 1464.88 | 2146.25 | 681.37 | 1437.50 | 105.51 | FY17 |
| 532991 | MVL | 0.37 | 0.54 | 45.9 | 22.24 | 32.46 | 10.22 | 4.86 | -2.03 | FY17 |
| 532998 | Lotus Eye Hospit | 15.75 | 34.70 | 120.3 | 32.76 | 72.18 | 39.42 | 33.96 | 0.46 | FY17 |
| 533006 | Birla Cotsyn | 0.08 | 0.08 | 0.0 | 21.35 | 21.35 | 0.00 | 89.95 | -88.19 | FY17 |
| 533015 | Nu Tek India | 0.62 | 0.76 | 22.6 | 9.58 | 11.74 | 2.16 | 39.23 | 1.87 | FY17 |
| 533121 | SQS India BFSI | 921.75 | 501.55 | -45.6 | 983.51 | 536.06 | -447.45 | 259.90 | 22.30 | FY17 |
| 533163 | ARSS Infra | 92.60 | 58.90 | -36.4 | 137.42 | 87.41 | -50.01 | 850.36 | -330.63 | FY17 |
| 533265 | Gallantt Ispat | 599.35 | 213.00 | -64.5 | 1692.33 | 601.43 | -1090.90 | 424.71 | 34.73 | FY17 |
| 534707 | Anshu’s Clothing | 3.34 | 1.52 | -54.5 | 4.16 | 1.90 | -2.26 | 0.16 | -1.20 | FY17 |
| 535694 | eDynamics Solut. | 5.71 | 6.64 | 16.3 | 13.37 | 16.97 | 3.60 | 2.51 | 0.03 | FY17 |
| 538365 | Adhunik Indus. | 138.80 | 104.40 | -24.8 | 649.08 | 488.21 | -160.87 | 374.34 | 2.30 | FY17 |
| 538422 | Jackson Invest | 7.65 | 3.69 | -51.8 | 222.39 | 107.27 | -115.12 | 4.33 | 0.03 | FY17 |
| 538771 | Pincon Spirit | 73.00 | 71.65 | -1.8 | 321.86 | 315.88 | -5.98 | 1420.05 | 43.04 | FY17 |
| 538787 | Goenka Business | 128.65 | 84.25 | -34.5 | 167.25 | 109.53 | -57.72 | 1.92 | 0.08 | FY17 |
| 539123 | V B Industries | 375.80 | 344.65 | -8.3 | 492.60 | 451.77 | -40.83 | 121.42 | 0.06 | FY17 |
| 590028 | Nicco Corpn. | 0.50 | 0.38 | -24.0 | 6.85 | 5.20 | -1.65 | 0.00 | -27.07 | FY17 |
| Data source: CapitalinePlus | ||||||||||