Technical view by Nooresh

Birla Power, Birla Cotsyn, Birla Shloka Edutech, Zenith Birla – The Pump and Dump

I have been writing on some market manipulations as well as pump and dump stocks for quite some time although its difficult to put in time to elaborate on the same.

One of the classical cases of such mistakes being made by small investors consistently is investing in Yash Brila Group companies.

The best part is every couple of months there is a company which comes out of the group with glossy advertisements on Business Channels !! and investors still end up buying them.


The first one to come on the radar for last few months has been Birla Power and the advertisements keep coming back every few weeks.


1) Birla Power Solutions Limited.

On the first look at the name it seems a power generation company but it is not. On the second look the promoter announces a 5000 crore expansion plan for which 1500 crore would be pitched in by the promoters into the SPV !

Whoa the best part market capitalization of the company then was less then 250 crores. Since then the market cap has now come down to 130-150 crores.

What is superbly exciting is was it day dreaming by the company of selling a dream :)

A youtube video - 

Stock price - 3.8 on March 2010 on the day of video.

Stock price toda - 1.8 !




2) Birla Shloka Edutech

Before that we saw a similar built up on Birla Shloka Edutech and the company came out with a FPO.The stock was rigged up before the FPO to higher levels of 80-100 and then a FPO was done at 45-50 levels.

Followed by this with the rosy views stock went up to 80-90 again.

Since then the stock has been on a vertical decline to 20s and has recently jumped to 40s.


The best part about this company is it keeps changing names every few years. Sometime back when retail boom came in it was supposed to be named Birla Lifestyles. Now with the education boom its become Birla Shloka Edutech. I am trying to guess the next name :)


Although this company seems comparatively better to the other group companies :) but i wont even remotely suggest buying into it :)


3) Birla Cotsyn


I have had many queries where people have bought few lakhs of this stock and actually the same dumbasses recommending me saying you are getting a BIRLA COMPANY at 1 rs what else do you want:)

I had no answer but to say best of luck:)

Now first of all why did the company split from 10:1 after IPO was a serious matter of concern.

Also the general investors dont understand that majority of the brokers charge 5 paise fixed so one ends up paying 11% in brokerage in this trade!! Whoa how stupid would be to buy something at that brokerage.


Now the real dope.

In between seeing the speculative built up in the stock i had also suggested the stock could jump 30% in a short time which it did - Check the link here - 


The stock did rally from 0.9 to 1.35 which is basicaly speculation. What was interesting is after the move there were advertisements on the Business Channels like CNBC talking glossy things about the company.


Followed by that the stock fell by 40% ! Why does the stock go down after such rosy advertisements !


4) Zenith Birla

The next on the radar was Zenith Birla. Yet again the same methodology. Stock moves up in a speculative manner followed by which nice advertisements giving big expansion plans, bonus etc come on the business channels.

The stock has announced bonus and dividends to allure the investors. Meanwhile stock is down 50% after the goodies played on CNBC :) ! i just saw the ad again :) 



Some basic observations.

1) Why would a company spend so much on advertising on a Business Channel. Isnt that a useless expense. Why is it not spending money on selling its products.

2) The company announces rosy announcements and expansion plans giving high growth expectations. But there is no need to sell the story to the viewers of a business channel who are majorly the normal retail investor. There is hardly any company presentation for the institutions if the company needed to raise money.

3) Every few months there is an advertisement on one of the group companies.

4) The best part is all the stock are first pulled up by 30% before the advertisements.

5) The bestest :) part the stock falls by 40% after the advertisement with high volumes !


Although in the above observations none of them have been done on the actual fundamentals of the company or any digging into the facts and we see so many negatives. If one does more digging into the above companies there could be some glaring negatives:)


This is yet again a clear warning to investors to be wary of Free SMS, Rosy Advertisements, Multibagger Tips etc :) . If you have come to


The above view is purely personal and could be entirely fictional and bears no resemblance to any existing company :) - Do read the disclaimer -





Article by Nooresh Merani

Nooresh has written 2532 articles.

You can follow Nooresh Tech on Facebook and Twitter here.

{ 18 comments… add one }
  • enkee October 20, 2010, 13:20

    Hi Nooresh Sir

    You are really helping a lot to the innocent investors.

    Kash CNBC wale aapko bhi invite karte so that innocent investors can be saved

    May GOD bless u with more intelligence so that u can guide us and May GOD give u health, wealth and all u want in your life for your such good acts (by writing such informational articles.



  • rashmi October 20, 2010, 19:49

    hello nooresh,can v see a symmetrical triangle pattern developing in mcleod russela charts.if yes what can be the breakout zone and the possible targets

  • Venkatesh October 20, 2010, 21:13

    Dear sir,
    I was getting ready to buy Birla shloka edutech since it had the name of Birla group. Usually we assume that whenever we see a big industrialist group name we believe that it is a good company. Thank u for u r suggestion. Let u r views help us

    • nooresh October 21, 2010, 17:55

      Hi Venkatesh,

      Dont consider my view as a decider but do dig a little more before you invest.

  • naintvik October 21, 2010, 11:07

    I wanna see nooresh on cnbc by mid 2011

    • nooresh October 21, 2010, 17:54

      Hi Naintvik,

      It aint necessary to be on a business channel :)

  • vivek October 22, 2010, 00:20

    Hi Nooresh,
    Once you mentioned birla cotsyn in your reco and then stock rallied from .85 to 1.45 and now stock is back to .85. I am still not able to figure out how you did that? Was that technical? becoz if technical dere are lot of stocks which are stucked like this like Sanraa media?


    • nooresh October 22, 2010, 01:14

      Hi Vivek,
      Well it was based on technicals seeing the speculative volume built up. But such stocks have similar patterns of pump and dump. Expo gas is one of them now.
      Sanraa not yet on volume ticks

  • sodhan October 24, 2010, 20:30

    Cranes software Zee Business breaking story co getting nucleur energy software orders soon within 5 minutes it skyrocketed to 35 after one hour sold out on big volume.Promoter integrity withheld results sold stake now 17 percent to 3 percent.Now talking of infusing funds.Yash Birla is still better this Birla belongs to big group or some namesake we do not know.In fact 60 percent stocks small cos without any cash flow is thugy.Your disclaimer speaks volumes as it is difficult to speak against.

    • nooresh October 25, 2010, 22:58

      Hi sodhan,

      One needs to good research and there is a lot of money to be made. At the same time should avoid the thugs

  • sodhan October 26, 2010, 05:34

    Market maker cos daily probably through inbuilt ring system trade certain stocks with predetermined price and volume being high it is shown as bulk deal next day.Now they are dumping glory poly avon corp beckons tulsi.Pumping started today with sel mfg.Kindly publish detail story on the subject how they are able to do it seems all paisa dot coms free
    tippers tv channel correspondents belong to this ring game.Are they not commiting sin on
    innocent investors and one day nature may punish these people in its own way.

  • sodhan October 27, 2010, 06:15

    Pump show is felt in Ksera likely pumping candidate Tricom.

    • nooresh October 27, 2010, 14:01

      Hi Sodhan,

      Will check them

  • sodhan October 30, 2010, 14:43

    There is live example.Zee business broke news cranes software getting large orders soon in one hour stock went 29 to 32 levels sold into same day on large volume.We were trapped did not sell it ended bottom at 5.7.FIIs exited enmasse Promoter sold stake 17 percent to 4 percent.No regrets as some banks are also trapped.Around 29 level trading shown 25 levels next day seen large lower shadow candle.Thought lower shadow eliminates selling preassure but went otherwise.Now learnt from a tip by Martin Pring lower shadow area is battle zone do not touch it till battlefield is cleared.Learnt a lesson of life Sell even i fone day prior lowest is violated.This episode has made me wise after losing good amount of money.

    • nooresh November 1, 2010, 11:55

      Hi Sodhan,

      The simplest reason is never catch a falling knife.

  • vjain1234 November 7, 2010, 15:27

    Hi nooresh, good job with highlighting the scoundrels, question is how can we beat them at their game, answer- is to gang up and expose them, real strategy is to buy when they buy and sell before them , make only HALF the profit that they plan to make, on this theory i hold birla shloka edutech, and will sell at abt 100, as yash birla plans to take it to 200 (grapevine news).

    • nooresh November 8, 2010, 13:32

      Hi vjain,

      You cant beat the promoters at their own game :) All you can do is take care.

  • Devang January 22, 2011, 12:04

    Hi Nooresh,

    Wht about shree ashtavinayak…

    Do u think it will bounce back to 20-30 level



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