Elcid Investments, which recently made headlines for a massive one-day spike, is once again in the spotlight following the release of its September quarter financial results.
The company reported a 143.5% year-on-year (YoY) increase in consolidated revenue, reaching ₹56 crore. However, on a sequential basis, revenue dropped by 68.53%. Net profit also surged 168.75% YoY to ₹43 crore, but this marked a 68.38% decline from ₹136 crore in the preceding June quarter.
Elcid Investments derives the majority of its income from investing activities rather than daily business operations, making it highly sensitive to fluctuations in asset prices. This unique business model exposes the company to the volatility of its investments.
Analysts remain cautious about the stock due to its low market liquidity, a key factor contributing to the recent massive spike in its value. The company’s average trading volume on both the BSE and NSE is approximately 1,000 shares, highlighting its limited market activity.
Investor sentiment has taken a hit following the company’s Q2 performance, with the stock declining 14.52% in the five sessions after the results were announced on November 12. The correction has also led to a 28% drop from its recent peak of ₹3,32,399 per share.
The company primarily generates revenue through investment activities rather than regular business operations, making its income highly dependent on asset price performance. This business model exposes the company to significant risks from market fluctuations.
Analysts have adopted a cautious stance on the stock following its September quarter performance, citing low market liquidity as a concern. This limited liquidity has also been a key driver behind the recent dramatic spike in the stock’s value. On average, the company’s trading volume on both the BSE and NSE is just around 1,000 shares, highlighting its restricted market activity.
