With a market capitalization of Rs 200 crores, the stocks of Eros International Media Limited saw a deep drag today after they slipped nearly 20 percent and reached Rs 21.10. The scrip is currently trading at Rs 21.70 which is near the 52-week low level of Rs 20.65.
One of the contributing factors to such a deep fall is pertaining to a regulatory filing that the company released with the BSE after market hours. The filing contained an Interim Ex Parte Order (binding order) from the Securities and Exchange Board of India (SEBI) in regard to an alleged breach of trade practice regulations.
Moreover, the capital market regulator also barred Mr. Sunil Lulla, Vice Chairman and Managing Director of Eros International Media Limited, from holding any Directorial position in any of the Group’s listed subsidiary companies.
Another one on the list is Mr. Pradeep Dwivedi who is barred from holding a Directorial position and accessing the stock markets until further order.
The company reported annual sales of Rs 680 crores during FY22-23 as compared to Rs 373 crores of sales in the previous financial year. Despite such positive numbers, the company’s Profit After Tax (PAT) slipped making it worse from a loss of Rs 9 crores during FY21-22 to a loss of Rs 119 crores in FY22-23.
Eros International Media Limited is engaged in the Entertainment and Media industry operating in the process of producing and distributing films in India and abroad. It distributes film content through various channels including television syndication, theatrical and digital platforms.
Investments in penny stocks are highly risky due to the company’s level of operations and the nature of illiquid trading as far as the stocks are concerned. Thus, it is advised to do a thorough analysis of the stock or consult your investment advisor before taking an entry into the same.
Written by Amit Madnani
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