Shares of little-known edible oil maker Vegetable Products Limited have jumped 975% or 11 times in calendar year 2021. The BSE-listed penny stock has been hitting the upper circuit daily since November 25 and its filter circuit rate was revised to 5 percent from 20 percent last month. In the past 27 sessions, the stock has jumped 430%.
Kolkata-based Vegetable Products Limited manufactures edible herbal oil and markets under the brand name Pratap Vanaspati. The sharp increase in the stock price of plant products can be attributed to the reduction in import tariffs by the government following a spike in global commodity prices, analysts said.
Earlier this week, major edible oil producers cut maximum retail prices for their products by 10% to 15% to provide relief to consumers, the industry body Solvent Extractors Association (SEA) said.
The government reduced import duties on December 20 when the base tariff on refined palm oil was reduced to 12.5%, from 17.5% at the end of March 2022.
During the quarter ended September 2021, Vegetable Products did not record any operating income and its other income amounted to Rs 8.27 lakh. The company recorded a net loss of Rs 18.23 crore in the second quarter of the current fiscal year.
In the first quarter of the current fiscal year, plant products posted a profit of Rs 2.95 lakh on zero operating income and Rs 9.25 lakh on other income income.
The November 30 stock exchange requested clarification from the company regarding the movement in the price of its shares and the company said it was not aware of the reason for a large movement in the price of the company’s shares. “The movement of the share price is purely determined by the market and can be a combination of various factors, including market conditions,” Vegetabl Products said in its November 30 clarification.
Vegetable Products share price was in high demand as there were pending buy orders for 3.73 lakh of shares while no seller was seen on BSE.