Upper circuit stock: Everest Kanto Cylinder almost doubles in one month
Broadly speaking, the investors were betting on two types of trades in the first half of the year i.e. as soon as the pandemic-led lockdown was announced.
Investors bet on two types of stocks, mainly those which could benefit from lockdown or say, COVID-19 proof stocks (FMCG, IT & Pharma). It also includes those stocks that are bound to benefit from unlocking the economy, now that the situation is getting normalised.
Everest Kanto Cylinder Ltd is just one of those stocks that raked in moolah as the demand for oxygen cylinders skyrocketed. The stock has more than doubled in just one month. Everest Kanto has shown a steady improvement in operating profits as well as net profits. The profit before taxes jumped on QoQ basis in the September quarter to Rs 46 crore from Rs 6 crore in the June quarter.
The stock locked in at its upper circuit at Rs 56.20 after gaining 4.95 per cent on an intraday basis.