Uflex shares rose more than 7% on February 28 after breaking a seven-day losing streak as the income tax department concluded a search of the packaging company’s premises.

The raid began on February 21, sending the stock down 30% over the past seven sessions. After the sell-off, the stock saw some buying at two-year lows amid heavy turnover.

The stock was quoted at Rs 379.50 per share on the NSE at 12 pm, up 7.3% from the previous close. It was the stock’s biggest intraday gain since March 2022. The trading volume was more than double the 20-day average.

During raids at more than 80 locations, 120 hard drives and 50 diaries containing information related to bogus transactions were found, according to IANS.

The news agency reported that the I-T department also uncovered breaches worth over Rs 1,500 crore and confiscated documents related to bogus transactions worth Rs 1,000 crore.

Information on more than 60 shell companies has been unearthed throughout the operation, and more than Rs 3 crore in cash has been seized.

For the December quarter, the company’s total revenue rose by just 0.6% while reporting a loss of Rs 85.41 crore. The company attributed the loss to the devaluation of the Egyptian currency, which resulted in a loss of Rs 84 crore.

Despite the rebound, the stock remains below its key moving averages.