Shares of media production house Sri Adhikari Brothers Television Network (SABTNL), which is under insolvency, have witnessed unrealistic growth in the last one year, turning multibagger from a penny stock. The microcap stock has changed the fortune of its investors by delivering astonishing returns of around 44,400% in just one year, with the share price rising from ₹1.39 on September 11, 2023, to ₹585.35 today. An investment of ₹1 lakh made in this stock a year ago would now have turned a whopping ₹8.2 crore.

Continuing its uptrend, Sri Adhikari Brothers Television Network shares were locked in its upper circuit limit of 2% at ₹585.35 on the BSE today, with a market capitalisation of ₹1,485 crore. In the last one year, exchanges have revised circuit filters for SABTNL from 10% to 5%, and further to 2% following the steep uptrend in the counter. 

Despite a 'Sell' call, the stock is currently trading above all its moving averages - 5-day, 20-day, 50-day, 100-day, and 200-day. The counter has surged around 20,000% in the calendar year 2024, while it zoomed 1,235% in six months, and 48.4% in a month. The stock has witnessed sustained rally despite weak fundamentals.

The media stock has been consistently hitting upper circuit for the last 102 sessions, despite being admitted to bankruptcy after defaulting on a bank loan. The Mumbai bench of the National Company Law Tribunal (NCLT) approved bankruptcy proceedings against the company in December 2023 on a petition filed by Central Bank of India after it failed to pay ₹27.57 crore of a ₹30-crore loan.

Established in 1994, the Mumbai-based Sri Adhikari Brothers Television Network, operating in the TV broadcasting and software industry, has been consistently gaining, indicating potential for growth in this space. Promoted by brothers Gautam Adhikari and Markand Adhikari, this was the first television production company in India, which got listed on the BSE in 1995. On the NSE, it made its debut in November 2007.

The company launched a Hindi general entertainment channel (GEC) “SAB TV” in 2000 which was later sold to a group company of Sony TV in 2005. The company has channels like Mastiii, Dabangg, Maiboli, Dhamaal and Dillagi. Mastiii is music channel for pan India. Currently, the group operates in two segments - content production and distribution and broadcasting. 

For the June quarter of FY25, the company posted net profit of ₹0.05 as against net loss of ₹5.29 crore during the previous quarter ended June 2023. The company posted sale of ₹1.09 crore in Q1 FY25, whereas no sales were reported during the same period last year.

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