Shree Ashtavinayak is it worth investing?

by Chirag on January 28, 2011

in Stocks

I am sure all investors must have heard about the movie “Dabbang” and “Shree Ashtavinayak Cine Vision”? The stock gave whooping 200% returns in 2 – 3 months, from Rs 18 levels it rallied up to Rs 50 odd levels.

Early September Shree Ashtavinayak released Dabaang, which turned out to be a hit. It set a record by grossing around Rs80 crore in the first week alone, which made it the highest grossing Bollywood film in 2010. It also did remarkable business overseas. Just because of this a 750 cr. company (market cap) became a Rs 2000 cr odd company (where market cap is concerned). What I conclude from this is Pure Operators Play!

The stock hit lower circuit form mid Novembers and from Rs 50 levels it came down as low till Rs 5, a 90% fall in price in less than 2 months!

The stock has now again caught the upper freeze since mid January 2011 and has give 33% odd returns since then and currently trading around Rs 8 levels.

Check out 1 year chart :

Image Source : Google Finance

So simply looking at the volatility the stock doesn’t look worth investing!

What’s your take on the same? Comment!

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