Multibagger return of 116% in 22 days
Such incidents are often seen in the stock market when any news or trend has a direct impact on the shares of companies. Recently, a very interesting case has come to light, where a gift from Prime Minister Narendra Modi made the stock market investors happy. During his visit to Italy last month, PM Modi had gifted the famous toffee ‘Melody’ to the Prime Minister Georgia Meloni.
As soon as Meloni shared the video of this meeting on social media, it quickly went viral. The effect of this viral video was that huge buying of shares of ‘Parle Industries’ started in the stock market. In no time, within 22 days the shares of this company gave a whopping return of 116 percent. The interesting thing is that the company whose shares were bought indiscriminately by investors has no connection whatsoever with Melody Toffee.
Stock market stir due to sweetness of melody
The video of the meeting of the two Prime Ministers in Italy came into discussion on May 20. On the same day, the stock of Parle Industries was trading at a price of Rs 5 in the stock market. As soon as the news of the melody gained momentum in the market, buying in this stock became dominant. With the installation of the upper circuit, it reached the level of Rs 5.25. The demand for this stock increased so rapidly in the market that except for a few trading sessions, the process of upper circuit in it continued.
Investors made bumper earnings in just three weeks
The result of this enthusiasm of investors in the market was that on June 11 (Thursday) also this stock hit an upper circuit of 5 percent. Now this stock has reached the level of Rs 10.81. In simple words, the investors who had invested money in this stock on May 20, their investment has more than doubled in just 22 days. From the stock market’s point of view, a rise of 116 percent in such a short time is a multibagger return.
Name confusion changed the fate of this stock
Now let us understand the most surprising aspect of this entire incident. ‘Parle Industries’, in whose shares investors have invested heavily, actually works in the field of infrastructure, real estate development as well as paper waste recycling. This company operates from Mumbai. It has no connection whatsoever with the manufacturing or selling of Melody Toffee. Parle Products Vice President Mayank Shah himself has officially confirmed that Parle Industries is a completely separate business entity.
What does the original melody making company do?
The company whose products we buy in the market in the name of Parle-G, Melody, Monaco, Crackjack or Hide and Seek is actually ‘Parle Products’. This is a very big and reputed FMCG company of the country, which is not currently listed in the stock market. Common investors were greatly confused simply because of the presence of the word ‘Parle’ in the names of both the companies. He bought shares without thoroughly investigating the company.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
