Targets 50 MW Data Centre as Stock Soars 77%

Sri Adhikari Brothers Television Network has gone from forgotten small-cap to one of November’s hottest stocks, surging 77% in a single month on news of a transformation into an AI infrastructure play. But beneath the euphoria lies a company with negative equity, auditor concerns about its survival, and no clear funding plan for its ambitious 50 MW data centre. For traders, this is either a generational wealth creator or a textbook pump-and-dump in the making.

What Just Happened

On November 24, 2025, SABTN’s board approved a complete strategic pivot. The company will rename itself Aqylon Nexus Limited and establish a 50 MW AI & Green Data Centre Campus in Telangana (Newsfile, November 25, 2025). This isn’t a side project—the Main Object Clause has been entirely rewritten to incorporate AI, machine learning, robotics, and cloud infrastructure, effectively abandoning its legacy media business.

The timing coincides with a dramatic management overhaul. Six key directors, including the managing director and chairman, resigned effective November 18, 2025 (Storyboard18, November 19, 2025). A new professional management team with technology infrastructure experience has taken over, backed by an open offer from Grow House Wealth Management to acquire 13.24% of the company’s voting capital.

Q2 FY26 results added fuel to the fire. Net profit supposedly jumped 8,000% to ₹14.11 crore (Sri Adhikari Bros. Tele Network, November 13, 2025). But dig deeper and you’ll find this was almost entirely due to a one-time ₹15.44 crore gain from selling property under an NCLT resolution plan. Operational revenue was just ₹4.34 crore, and auditors explicitly flagged material uncertainty about the company’s ability to continue as a going concern.

Stock Performance & The Analyst Void

The market has spoken in the loudest terms possible. SABTN closed at ₹1,390 on November 27, having gained for 10 consecutive days. The stock has hit its upper circuit limit (5% maximum daily gain) repeatedly throughout November, with volume spiking to 17,039 shares on November 25 versus typical daily volumes in the hundreds earlier this year.

This explosive move brings the stock to 37% below its all-time high of ₹2,197.70 from December 2024. The 52-week range of ₹349.15 to ₹2,197.70 tells a story of extreme volatility—down 84% from peak to trough, now rallying 298% off the lows.

Here’s the critical gap: As of November 27, 2025, not a single major brokerage has published coverage on this transformation. ICICI Securities and Motilal Oswal are silent. The only recent rating—Bazaartrend’s August 8, 2025 “Buy for LONG-TERM” call with a stop loss of 882.71—is now obsolete given the complete business model change. This creates a dangerous information vacuum where retail momentum drives price discovery without institutional anchors.

What This Means for Traders Right Now

Momentum Context: The stock is in a parabolic blow-off phase. A 77% monthly gain in a small-cap with limited float almost guarantees extreme volatility ahead. This is classic story-stock behavior—fundamentals don’t matter until they suddenly do. The divergence between price and volume on the final rally days (volume falling while prices rose) often signals exhaustion.

Entry/Exit Considerations: At ₹1,390, the stock is extended far beyond any reasonable technical base. Conservative traders should wait for a pullback to at least ₹1,200-1,250, which represents the breakout level from mid-November. More aggressive momentum traders might attempt to ride the wave but must use tight stop losses below ₹1,300. The path to ₹2,197.70 (the all-time high) represents 58% potential upside, but the path back to ₹1,000 is a 28% downside risk.

Sentiment Shift: The narrative has completely flipped from “distressed media company” to “AI infrastructure pure-play.” This kind of thematic rebranding can drive sustained retail interest, especially with India’s data centre boom making headlines. However, sentiment can reverse instantly if the company fails to secure funding or provide a credible execution timeline.

Key Price Levels: Immediate support sits at ₹1,314 (last week’s breakout level), with stronger support at ₹976 (the pre-rally base). Resistance is layered at ₹1,417 (November high), then the psychological ₹1,500 level. The all-time high at ₹2,197.70 remains a distant but tantalizing target for bulls.

Next Catalysts: Three events matter most. First, ROC approval for the name change (likely a formality but could trigger another spike). Second, the shareholder postal ballot from December 3 to January 5, 2025, which could see institutional investors voice concerns. Third, and most critical, any announcement on data centre financing—without this, the entire thesis collapses.

Risk Factors:

• Financial Fragility: The company has negative equity of ₹24.54 crore and auditors question its survival. A 50 MW data centre costs roughly $35-40 million per MW to build—Aqylon Nexus needs roughly $2 billion, yet has a market cap of just ₹48.78 crore.
• Execution Risk: Zero track record in data centre construction. The new management team is unproven in delivering projects of this scale. Without partnerships with major hyperscalers or infrastructure funds, this remains a pipe dream.
• Valuation Disconnect: The stock trades at a price-to-sales multiple that defies logic for a company with ₹4.34 crore quarterly revenue. Any disappointment on financing or project timelines could trigger a brutal correction back toward ₹800-900 levels.

The Bigger Picture: Riding India’s AI Wave

India’s data centre market is undeniably booming. CBRE projects capacity will triple to 4.5 GW by 2030, with AI workloads growing at 36% CAGR. Telangana is emerging as a key hub, and the government’s draft policy offers 20-year tax exemptions. Other small-caps like Netweb Technologies and Anant Raj have successfully pivoted to infrastructure plays, creating a template.

But context matters. Those companies had either land banks, technical expertise, or existing cash flows. Aqylon Nexus has none of these—just a vision document and a compliant board. The data centre business is capital-intensive and hyper-competitive, dominated by Adani, EdgeConneX, and global hyperscalers. A ₹48.78 crore market cap player entering this space is like a corner store announcing it will compete with Amazon.

Final Takeaway: Trade the Story, Don’t Marry It

For active traders, SABTN offers a high-risk, high-reward momentum trade. The story is compelling enough to drive further retail inflows short-term, especially if the name change gets approved and management issues promotional updates. Conservative traders should stay on the sidelines until the company secures credible project financing and Q3 results show sustainable operational improvement.

Aggressive traders can play the volatility—buying breakouts above ₹1,420 with stops at ₹1,300, or shorting breakdowns below ₹1,250 with tight risk management. But position size small. This is a lottery ticket, not an investment. The moment financing plans are announced (or fail to materialize), the stock will reprice violently. Until then, trade the chart and ignore the hype.

Disclaimer: This blog has been written exclusively for educational purposes and does not constitute investment advice or personal recommendations. The author is not SEBI-registered as an investment advisor. Recipients should conduct their own research and consult a qualified, SEBI-registered investment advisor before making any investment decisions. Investments in the securities market are subject to market risks; read all related documents carefully before investing.