Mumbai: Shares of Eros International Media today made a comeback, rising nearly 8 percent, after the firm reassured its shareholders about the company's "strong" fundamentals.
The stock which received severe drubbing in the previous session, falling over 19 percent, made a smart recovery and rose by 7.7 percent to Rs 381.70 on BSE.
At NSE, it gained 7.73 percent at Rs 380.95.
As per media reports, financial services major Wells Fargo had raised questions about the company's growing business in the United Arab Emirates.
The BSE yesterday sought clarification from the company with reference to the news that Eros International is under Wells Fargo's scanner and reports of stock downgrade.
In a clarification to the BSE yesterday, the company said, "We believe that the recent movement in share price volatility at our NYSE (New York Stock Exchange) listed parent level and at Indian stock exchanges are based on speculative media reports."
Analysts downgrade or upgrade stocks regularly and that as such is not a cause for concern, it said.
It added: "Note that Wells Fargo did not revise down their earnings estimate for the quarter or the year and the price target is USD 22, well above the price the stock was trading on the date it was published.
"We would like to reassure our shareholders that there has been no material change to the previously announced strong fundamentals of the company."
The first quarter results have been strong and nothing has materially changed since then, the company said.
"We will be announcing what we expect to be a strong second quarter in the first half of November," it added.
"We reaffirm our commitment to enhance shareholder value. We believe that the merit in our business and our fundamentals are there for everyone to see as we remain focused on achieving our business goals and objectives," the filing said.
