Polson hits new high, again

Polson Ltd is frozen on the 5% upper circuit at Rs.1212.40, a new 52-week high. It is a very thinly traded stock, with only 5 shares changing hands today morning, sending the stock to a new high. Market cap stands at Rs.14 crore.

The stock is up on hopes of delisting as promoters stake in the company stands at above the 75% stipulated mark of SEBI at 84.33%. 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.