This Reliance group stock has rallied 52% in 9 days; zoomed 120% in 5 weeks

Shares of Lotus Chocolate Company were locked in the upper circuit for the eight straight trading day, up 5 per cent at Rs 1,035 on the BSE as of 12:14 pm on Monday.

Shares of Lotus Chocolate Company were locked in the upper circuit for the eight straight trading day, up 5 per cent at Rs 1,035.05 on the BSE on Monday at 12:14 pm; with only buyers seen on the counter.

As many as 120,000 shares changed hands so far as compared to sub 10,000 shares traded in the past two weeks on the BSE. There were pending buy orders for 11,970 shares on the exchange, data shows. Lotus Chocolate Company trades under the ‘X’ category. Companies falling in the X sub-group are traded only on the BSE and not on the NSE.

 

In the past nine trading days, the stock price of Lotus Chocolate Company has rallied 52 per cent from Rs 681.50 on July 15. In the past five weeks, the stock more-than-doubled or zoomed 120 per cent from Rs 470 on June 24.

Lotus Chocolate Company is primarily engaged in the manufacturing of Chocolates, Cocoa Products and other similar products in nature. 

Reliance Consumer Products Limited (RCPL), the fast moving consumer goods (FMCG) arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL), had acquired controlling stake in the Lotus Chocolate Company on May 24, 2023. RRVL is a subsidiary of Mukesh Ambani's Reliance Industries and serves as the holding company for all RIL retail companies.

As on June 30, 2024, the promoters including RCPL (51 per cent) held a total 72.07 per cent stake in Lotus Chocolate Company. Individual shareholders held 25.41 per cent, while, the remaining 2.52 per cent stake held by corporate bodies (1.99 per cent) and others (0.53 per cent), the shareholding pattern data shows.

Meanwhile, the recent rally in stock price of Lotus Chocolate Company is on the back of strong earnings, as the company reported a profit of Rs 9.41 crore for the June 2024 (Q1FY25) quarter. It had posted profit of Rs 0.20 crore in Q1FY24 and Rs 1.18 crore in March 2024 quarter (Q4FY24). The company’s revenue from operations jumped over four-fold to Rs 141.3 crore from Rs 32.3 crore.

The company said the Indian confectionery industry has a long runway for growth driven by the secular trends of increasing demand for quality content and higher time spent across demographics on content consumption.