Why did the share price of Prozone intu properties show a stellar rise giving over 80% in last week and 120% last month?
Prozone is not doing well financially. Promoters have been decreasing their share holding QoQ. There's been a major fall in TTM net profit. Degrowth in revenue. Company is paying more interest than its revenue!
So essentially the fundamentals seem to be very weak. But the momentum recently has been very good. Which begs the question why ?
It's because it was recently added into the portfolio's of Jhunjhunwala, Damani, Ashish Kacholia and Vijay Kedia - some superstar investors. And as the news spread, more people followed and invested in the company driving the price higher.
The question remain why would these big investors invest in a company which seems to be doing not so well ? It's because they believe recovery in the market is underway and there is a high probability that small and midcap companies will outperform largecap in near future.