InvestorQ : Why was there such a sharp spurt in the price of Aarti Drugs on 20 August?
Angel dcosta made post

Why was there such a sharp spurt in the price of Aarti Drugs on 20 August?

Answer
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diksha shah answered.
1 month ago


It was the star performer on 20 August and touched the upper circuit limit of 20% in trades. The big trigger was after Aarti Drugs announced bonus issue in the ratio of 3:1. This will help bring the stock price of the company within a more affordable range for traders.

Aarti Drugs essentially operates in the chemical and bulk drugs space. Aarti Drugs had reported a 280% rise in profits in the Jun-20 quarter and this had led to a sharp rally in price. The stock has been a 4-bagger since January this year, amazing in such tough times.

One can argue that the stock does look a tad steeply priced at the current market price of Rs.2700. However, specialty chemical is a business where the exit of China has left a huge void for India to fill and it is an opportunity for the taking.