This Stock Under Rs 40 Is Soaring? Is Something Cooking In The Stock?

The shares of Vakrangee are seeing some massive buying in the last few trading sessions and the shares are soaring with volumes. In trade on Wednesday, the stock was up 11% in trade on sizeable volumes.

Shares of Vakrangee jump 11%

The shares were seen gaining a huge 11% in trade and closed at Rs 37 on Wednesday. The stock is still well below its 52-week high of Rs 47. The company's activities are centred around building India's largest network of last-mile retail outlets to deliver our services to the unserved and the underserved rural, semi-urban and urban population of the country.

Is something cooking in the stock?

There is nothing cooking in the stock according to the company. In with regard to the increase in the volume of the Company's securities, the Vakrangee has informed the BSE that there is no information/announcement, including impending announcement, to be made by the Company which, in its opinion, may have a bearing on the price/volume behavior in the Company's scrip.

"Hence, we are unable to comment on the significant Increase in the volume of Company's security across Exchanges in the recent past and the Management of the Company is in no way connected with any such price/volume movement. Further, we would like to reiterate that as in the past, the Company would continue to inform the Exchanges of any price sensitive information and to make available on the Company's website, before the same is made public," the company said in a release to the exchanges.

About the Vakrangee Kendras?

The company operates on an asset-light franchisee-based model. According to the company, its Nextgen Vakrangee Kendras have robust revenue generating capabilities supported by an advanced technological platform and multi-line of services. Each vertical of Vakrangee has the potential to achieve strong results and generate healthy returns. Every outlet of Vakrangee is supporting our key objective to set up a modern-day Nextgen Vakrangee Kendras, which makes our Kendras clearly and distinctly identifiable as "assisted digital convenience store".

Should you buy the stock?

We do not recommend buying such stocks and would rather prefer the larger companies. On the charts the stock does look extremely strong, giveN the surge in the price of the same. However, in terms of fundamentals, investors should wait rather than buy at the moment. In any case, the markets are also extremely volatile at this juncture and hence caution is advised at this stage. Also, do invest for the long term and avoid buying stocks for the shorter term.