A lot of ups and downs are being seen in the stock market these days. But, even in this period of huge decline, there is one stock which is continuously touching the sky and filling the pockets of investors. This is not an ordinary company, but ‘Prime Focus’, a giant company working on the visual effects (VFX) of Bollywood star Ranbir Kapoor’s upcoming film ‘Ramayana’. This company has surprised its investors by giving a bumper return of 265 percent in just one year. On one hand, big stocks are collapsing under market pressure, on the other hand, this stock has more than doubled the capital of common investors in a few months.
The stock market rose as soon as the teaser came.
When the first teaser of the film ‘Ramayana’ was released in July last year, the share price of Prime Focus was at the level of around Rs 160 in the market. Since then there has been no looking back for this stock. When the second teaser of the film was released on April 2, the company’s shares soared to Rs 330. This simply means that teaser after teaser investors have made a direct profit of 106 percent.
Despite adverse market conditions, the stock recently touched its 52-week high of Rs 347.80. If we look at the performance of the last six months, it has made a strong jump of 88.08 percent. Due to this continuous growth, today the total market cap of the company has crossed Rs 25.61 thousand crore.
Ranbir Kapoor is also going to invest
The reason behind this stormy rise in the stock is not only the excitement about the film, but a big news is also working in the market. If media reports are to be believed, Ranbir Kapoor, who is playing the role of Lord Ram in ‘Ramayana’, has himself planned to invest in this company. Actually, Prime Focus had given its approval to the preferential issue of more than 46 crore shares some time ago. In this proposal, Ranbir Kapoor’s name was also included in the list of investors to whom 12.5 lakh shares were proposed to be allotted. However, the situation is not completely clear yet whether they have completed this purchase or not.
The basic business of the company is also very strong. Prime Focus provides the best animation, post-production and VFX services internationally through its global subsidiary ‘DNEG’. This company has also created spectacular visual effects for Hollywood’s Oscar winning blockbuster films like ‘Inception’, ‘Interstellar’, ‘Dune’, ‘Tenet’ and ‘Blade Runner 2049’.
Promoters sold shares, confidence of small investors increased
To understand the future of any company, common investors definitely look at its shareholding pattern. According to Prime Focus’ December quarter data, ‘Ramayana’ producer Namit Malhotra holds 1.92 per cent stake in the company, while his father Naresh Malhotra owns 5.61 per cent shares. The total stake of promoters in the company is 60.76 percent.
But an interesting change has been seen here. Since the March quarter last year, the company’s promoters have reduced their stake by more than 9 percent. The share of foreign institutional investors (FIIs) has also dropped from 11 percent to 3.35 percent and domestic institutional investors (DIIs) hold 1.14 percent shares. Contrary to all this, common retail investors have placed their bets heavily on this stock. During the same period, the share of retail investors has jumped from 18 percent to 34.74 percent.