Some basics reasons for the correction in Vakrangee shares

Vakrangee is in a quagmire of price manipulation & rigging. It got exonerated of these charges by the SEBI which came as a surprise to many market analysts[1][3].

The company had done exceedingly well in the last few years thereby bringing it on the NSE’s radar. Post the public disclosure of the manipulation in Jan 2018, the stock has entered a vortex[1][4].

With concerns of manipulation through the futures contract & for protection of minority share holders, SEBI has introduced Additional Surveillance Measures (ASM) on total of 20 stocks including Vakrangee with effect from March 26, 2018[4]. Since then, it’s seen a fall from ₹ 245.25 to ₹ 132.75[5].

Considering the above stated reasons, it is best not enter the stock just because it is

• At Low valuation
• Doing well or Getting Contracts

Fundamentals need to support the growth story..

This is not the case with Vakrangee.

There are lot of quality companies which are giving decent to exceptional returns.

Happy Investing!!!

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References

1. https://www.indiatoday.in/india/story/sebi-clean-chit-to-largest-aadhaar-enrolment-agency-vakrangee-raises-eyebrows-1165663-2018-02-09
2. https://simplywall.st/stocks/in/software/nse-vakrangee/vakrangee-shares/news/who-are-the-largest-shareholders-in-vakrangee-limited-nsevakrangee/
3. https://the-ken.com/story/vakrangee-share-price-sebi-probe/
4. http://wap.business-standard.com/article/markets/vakrangee-locked-lower-circuit-for-eight-straight-day-falls-34-in-8-days-118040400398_1.html
5. Vakrangee Share Price, Vakrangee Stock Price Quote, Today Stock Price NSE/BSE
6. http://www.vakrangee.in/
7. http://www.vakrangee.in/gallery4.php?id=28
8. http://www.business-standard.com/article/markets/corporate-governance-issues-no-respite-for-vakrangee-stock-down-by-half-118020500471_1.html