Upper Circuit Alert! Small Cap FMCG Stock Surges 5% On This Update; Shares Rises 400% In 2 Years

The shares of small-cap fast-moving consumer goods (FMCG) company 'Spice Lounge Food Work' soared to hit the upper circuit in early trade on Thursday amid buying as the key benchmark indices--Sensex and Nifty---traded higher on buying in IT stocks and expectation that the US Federal Reserve may adopt a less aggressive monetary policy stance after softer-than-expected inflation data.

The small-cap stock started the session in green at Rs 26.50, up Rs 1.15 or 4.5 per cent as compared to the last day's closing of Rs 25.35 on BSE. Continuing the momentum, the stock gained further to hit its 5 per cent upper circuit at Rs 26.61.

At the time of writing, the stock was trading at Rs 26.06, up 2.80 per cent or 0.71, erasing some of its gains made through profit booking. Meanwhile, it's 52 week high and low stood at Rs 72.20 and 16.21, respectively.

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Company Update About a Launch

The stock surged following an update from the company. The company recently announced that its technology subsidiary, Teksoft Systems, Inc, launched Ondesi.ca. This is an online classifieds and community marketplace specifically for the Desi (South Asian) community in Ontario, Canada.

According to the company, the platform connects people of Indian, Bangladeshi, and Sri Lankan origin living in Ontario.

People can easily buy and sell goods, search for jobs, find rental information, and access groceries, food, student centres, and a variety of services and community amenities, it said.

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Stock price history

According to BSE Analytics, the scrip has gained multi-fold in the long run, gaining over 1,200 per cent in five years. In the last two years, it rose by over 400 per cent in two years. However, the stock has corrected by 25.65 per cent in one year. This year till date (YTD), the scrip fell 31.18 per cent.