Vaibhav Global shares experienced a significant uptick on Tuesday, September 16, as the stock rallied 9% in a single trading session. This surge is part of a broader upward trend for the company, with the stock gaining ground in five out of the last seven trading days.

Recent Performance

The jewelry retailer's stock has demonstrated impressive momentum, climbing 18.00% over the past seven trading sessions. September has been particularly strong for Vaibhav Global, with the stock price soaring 25.00% since the beginning of the month.

Trading Activity

Tuesday's rally was accompanied by a substantial increase in trading volumes. Approximately 12 lakh shares changed hands during the session, significantly higher than the 20-day average of 1 lakh shares. This surge in trading activity suggests heightened investor interest in the stock.

Technical Breakout

The recent price action has propelled Vaibhav Global's stock above key technical resistance levels. The shares have now surpassed both the 100-day moving average at ₹234.00 and the 200-day moving average at ₹247.00, potentially signaling a bullish trend in the near term.

Year-to-Date Performance

Despite the recent rally, Vaibhav Global's stock is still down 12.00% year-to-date. However, the strong performance in September has considerably reduced these losses.

Investors and market analysts will be closely watching Vaibhav Global's performance in the coming days to see if this rally can be sustained.

Vaibhav Global Limited , a prominent player in the fashion jewelry and lifestyle products sector, has received a draft assessment order from the Income Tax Department for the assessment year 2022-23. The order, issued under Section 144(C) of the Income Tax Act, proposes significant adjustments amounting to Rs 2,048,658,409 (approximately Rs 2,048 crore) related to transfer pricing issues.

Key Points of the Draft Assessment Order

Company's Response and Outlook

Vaibhav Global has announced its intention to file objections against the proposed adjustments before the Dispute Resolution Panel. The company's stance is bolstered by its track record of favorable decisions from the Income Tax Appellate Tribunal (ITAT) in previous assessment years on similar transfer pricing matters.

Financial Implications

Based on its internal assessment, Vaibhav Global does not anticipate any material financial impact from this draft order. The company emphasized that:

• No penalties or sanctions have been imposed at this stage
• The final financial implications will only be determined upon the issuance of the final assessment order

Transfer Pricing Context

Transfer pricing refers to the rules and methods for pricing transactions between enterprises under common ownership or control. These regulations are crucial for multinational companies to ensure that inter-company transactions are conducted at arm's length, preventing artificial shifting of profits between jurisdictions.

The substantial amount involved in the proposed adjustments underscores the complexity and significance of transfer pricing issues in international business operations. However, Vaibhav Global's confidence in its position, based on previous favorable rulings, suggests that the company has a strong case to present before the Dispute Resolution Panel.

As this situation develops, stakeholders will be keenly watching the outcome of Vaibhav Global's objections and the final assessment order, which will ultimately determine the financial impact, if any, on the company.