The Hindu Business Line : Robinson World soars despite weak fundamentals

AT a time when there is a fall in the stock price of fundamentally sound companies, a section of market players is using this opportunity to manipulate the stock price of companies with weak fundamentals. In this list is Robinson Worldwide, formerly Robinson Impex.

What is more interesting is that trading in the shares of Robinson Worldwide started this March, after a gap of almost three years. The stock is traded in the Z category on the BSE. Companies with weak fundamentals and which do not comply with the listing agreement of the stock exchange are put in the Z category.

Since the trading started on March 30, the company's stock price has increased from Rs 41.90 on the BSE to Thursday's closing price of Rs 93.40, a gain of 123 per cent. The volume in the counter has also increased from a few hundred shares to 23,500 shares in Thursday's trading.

According to stock brokers, the company does not have any fundamentals to support the sharp rise in the price in such a short period. "It's pure manipulation" said one of them.

He said the company changed its name from Robinson Impex to its current name in 2000. It also announced venturing into back-office management for healthcare-related companies, insurance companies, banks, provident fund organisations and health management organisations.

However, after 2000, its financials have not improved. From a revenue of Rs 1.95 crore and a net profit of Rs 13 lakh for the financial year ended 2001-02, revenue for 2003-04 was Rs 6.5 lakh and net profit Rs 2.4 lakh.

A sharp rise in the stock price of Hindustan Bioscience was also observed early this month. This company has also changed its name several times.