Mukul Agrawal stock hits a chain of 52-week lows - whats worrying investors

EKI Energy Services shares were locked in the lower circuit for a third straight day on Wednesday, after a new auditor of the climate change and carbon credit solutions provider flagged the company's accounting policy.

The EKI Energy stock — a part of ace investor Mukul Agrawal's portfolio — was frozen at a cut of Rs 70.2 or 10 per cent at Rs 632 in afternoon deals on BSE, taking its losses beyond 42 per cent in three back-to-back sessions.

EKI Energy shares hit the 20 per per cent lower circuit each on Monday and Tuesday.

Had the company applied the principles of revenue recognition under Ind AS, its revenue would have been lower by Rs 310 crore and profit by Rs 180 crore for the April-December period, according to Dubey.

The Street is also concerned about the company’s cash flow along with working capital management, he said.

Clarifying its stance, EKI Energy's management said that it is in the process of counselling senior advocates and professionals in this regard along with the customers to amend the contractual clauses.

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This is to "ensure the essence of the contract is brought in properly within the contract to the satisfaction of the Statutory Auditors. Relevant information and updates in this regard will be shared with all the stakeholders from time to time," EKI Energy added.

Agrawal had 4,52,389 EKI Energy shares, equivalent to 1.6 per cent of the company's equity, as of December 31, according to shareholding data available on BSE.

The celebrity investor publicly holds 56 stocks in his portfolio with a net worth of over Rs 2,771 crore as of February 15, according to stock analysis portal Trendlyne. 

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