2,414 per cent jump in net profit in this multibagger penny stock; Fresh buying seen by FIIs!

The stock gave multibagger returns of 215 per cent in just 1 year and over 350 per cent in 2 years.

On Wednesday, shares of R O Jewels Ltd zoomed 3.74 per cent to Rs 7.22 per share from its previous closing of Rs 6.96. Currently, the stock is trading at Rs 6.98 per share, up 0.29 per cent. The stock gave multibagger returns of 215 per cent in just 1 year and over 350 per cent in 2 years.

The sudden rise in stock price was to due FIIs having bought significant stakes through bulk deals and are increasing continuously. According to details available, Vikasa India EIF I Fund-Incube Global Opportunities picked 2,80,000 shares at Rs 7 apiece aggregating to Rs 19.60 lakh.

RO Jewels Ltd. (BSE: 543171), a prominent player in the gems and jewellery industry, has reported impressive financial performance for Q4FY23 and FY23. In Q4FY23, the company witnessed a remarkable surge in net sales, soaring by 1,345 per cent to Rs 33.98 crore, and net profit experienced an astonishing growth of 2,414 per cent, reaching Rs 1.92 crore compared to Q4FY22. Similarly, for the entire FY23, net sales rose by 918 per cent to Rs 506.62 crore, and net profit skyrocketed by 1,047 per cent to Rs 2.01 crore compared to FY22.

The company has a market cap of Rs 35.21 crore. Its stock exhibits a PE ratio of 17.50x, while the sectoral PE stands at 39x. Additionally, RO Jewels Ltd. demonstrates a commendable ROE of 22.41 per cent and ROCE of 20.40 per cent.

Notably, the company recently underwent a stock split, reducing the face value of each share from Rs 10 to Rs 2, with a record date of March 17, 2023. Prior to the stock split, a bonus was also issued in the ratio of 82:32, with a record date of June 02, 2022. Investors should keep an eye on this micro-cap stock under the radar.