Olectra Share price almost doubled in 15 days. An Inside trading or Fake Hype?
Olectra Share price had almost doubled in the last 15 days and it is the only firm which has been so much rise in these tough times of Indian market. Stock is trading amost 7 times of it’s book value and it has also seen a gradual decline in the second half of the year 2022 to which many of the investors called it selling of shares by insiders. Therefore, though there is sudden rise in the share price in the last 15 days , there seems to be no diversity in range of investors from across the country as most of the investors believe that majority of the buyers could be from Telugu states who can get leaks from with in the firm.
SSince it is believed that second half of the year has seen a gradual decline in the share price was due to selling off by inside investors. Many believe that now a sudden rise of over 90% in 15 days, might also face the similar down trend very soon as there is no logic for investors buying these shares over Rs.700 with just few hundreds of crores of market with many top competitors.
Olectra share price was Rs.384 of Feb 22 and it went up to Rs.675.00 in 15 days. Though there are factors behind the hike , but those two factors aren’t enough to make it double in half a month. Those two reasons for already discussed by Desidust business team in previous posts when its share price just rise above 25% .
However, a share price of an upcoming Automotive firm cannot get doubled for just one huge order. There were many instances in the history where automobile companies have bagged much bigger orders from the governments.
For Ex : Ashok Leyland had bagged three times bigger order a year ago but the share price of Ashok leyland didnt see the similar bump .
https://www.thehindubusinessline.com/companies/ashok-leyland-bags-mega-order-for-1400-school-buses-in-uae/article65834169.ece
Experts also believe that the fate of company share might slightly be influenced by the CAAG report on Kaleshwaram project built by Telangana govt. MEIL was biggest contractor or the Kaleshwaram project and it is the major investor of Olectra.
