InvestorQ : The promoters of Vakrangee Software have been buying heavily into the counter and stock is sharply down. Can I also buy the stock for quick gains?
Dilmini Mercia made post

The promoters of Vakrangee Software have been buying heavily into the counter and stock is sharply down. Can I also buy the stock for quick gains?

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Dhwani Mehta answered.
2 years ago
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I am not sure if you have seen the stock price movement of Vakrangee over the last 18 months but the price has fallen from Rs.600 to Rs.30. That is roughly a fall of 95% from the recent peak and that is not an ordinary fall. Obviously, there is something more to it than meets the eye. The company had a market cap of Rs.60,000 crore last year but now it is down to Rs.3200 crore. That shows you the kind of value damage. Let me quickly run you through why the stock fell so sharply.

The fall began sometime in first quarter of 2018 when the auditors of the company resigned protesting against some of the accounting practices. The company had been previously involved in some dubious transactions with PC Jewellers which had also brought the stock down. Over the last one year, the company has shown an ability to scale up its model and also serious corporate governance issues and later the auditors had raised serious objections over some of their investments. I am not sure you should really be buying the stock just because the promoter is buying. These can be means to just tempt investors. It is a stock you should stay away from.

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