3,030 per cent jump in net profit in this multibagger penny stock under Rs 5; do you own it?

The stock gave multibagger returns of over 130 per cent in 2 years.

On Monday, shares of RO Jewels Ltd plunged 0.77 per cent to Rs 3.87 per share from its previous closing of Rs 3.90. The stock traded at an intraday high of Rs 3.99 and an intraday low of Rs 3.85.

The company announced its stellar Quarterly Results and half-yearly results ended September 30, 2023. Here are the details: -

Standalone Financial Highlights for the H1FY24: 

• Net sales stood at Rs 292.71 crore, up 852.86 per cent compared to H1FY23. 
• Operating stood at Rs 1.88 crore, up 3,139.66 per cent compared to H1FY23. 
• Profit before tax stood at Rs 1.67 crore, up 3,101.92 per cent compared to H1FY23.  
• Profit After Tax of Rs 1.32 crore, up 3,030.95 per cent compared to H1FY23.  
• The EPS for H1FY24 is Rs 0.26.

According to quarterly results, the company reported net sales of Rs 19.87 crore, operating profit of Rs 0.35 crore and net profit of Rs 0.21 crore in Q1FY24.

According to the annual results, net sales increased by 918 per cent to Rs 506.62 crore and net profit skyrocketed by 1,047 per cent to Rs 2.01 crore in FY23 compared to FY22. The company has a market cap of Rs 19.50 crore with a 3-year stock price CAGR of 28 per cent.

RO Jewels Ltd. (BSE: 543171) is primarily focused on offering a range of gold-based chains, bracelets, gold/silver bars, and necklaces. The stock has a PE of 5.90x whereas the sectoral PE is 39x with a ROE of 20 per cent and a ROCE of 21 per cent.

Earlier, the company's share capital was split from 10 shares with a face value of Rs 10 each to 5 shares with a face value of Rs 2 each. The stock split took effect on March 17, 2023.

The stock gave multibagger returns of over 130 per cent in 2 years.  Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.