Parle Industries stock hits upper circuit for second day on 'Melody' frenzy

Excitement around the Parle Industries Ltd shares does not seem to slow down on Dalal Street.For the second day in a row on Thursday, investors did not let the name confusion deter their buying spree amid the ongoing Melody frenzy.Heightened investor interest at Parle Industries counter began on Wednesday after Italian Premier Giorgia Meloni posted a video of Prime Minister Narendra Modi gifting her a packet of Melody toffees.

Excitement around the Parle Industries Ltd shares does not seem to slow down on Dalal Street!.

For the second day in a row on Thursday, investors did not let the name confusion deter their buying spree amid the ongoing 'Melody' frenzy.

Heightened investor interest at Parle Industries' counter began on Wednesday after Italian Premier Giorgia Meloni posted a video of Prime Minister Narendra Modi gifting her a packet of Melody toffees. Investors mistook Parle Industries for the maker of Melody toffees.

Parle Products, the FMCG major, is the manufacturer of Melody toffees and is not listed on the stock exchanges. The other famous brands of Parle Products are Parle-G, Monaco, KrackJack, Hide & Seek, Kaccha Mango Bite and Mango Bite candy, among others.

Parle Industries Ltd, on the other hand, is a diversified commercial services provider, engaged in the business of infrastructure & real estate, and paper, waste paper and allied products.

On Thursday, shares of Parle Industries Ltd further surged 4.95 per cent and were locked at the upper circuit limit of Rs 5.51 on the BSE.

The company's market valuation stood at Rs 26.91 crore.

On the trading volume front, 6.48 lakh shares of the firm changed hands at the BSE during the day.

In the previous trade also, shares of Parle Industries Ltd saw frenzied buying, surging 5 per cent to hit the upper circuit limit.

''The surge is driven by name confusion - Parle Industries has no connection with Parle Products, the unlisted maker of Melody toffees and Parle-G. Such name-based pumps in penny stocks are typically short-lived. Expect profit-booking, volatility, and potential downside once hype fades,'' Santosh Meena, Head of Research at Swastika Investmart Ltd, said.

Parle Products on Wednesday joined the online buzz after Modi gifted a packet of Melody toffees to Meloni during an interaction that quickly went viral on social media.

Capitalising on the moment, Parle Products shared the video on Instagram with the caption: ''Sweetening relationships since 1983''.