Debt-free multibagger penny stock under Rs 10 to keep under the radar as the company announces stellar quarterly results (Q1FY25); PAT jumps over 1,700 per cent!
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 2.51 per share.
Today, shares of Shah Metacorp Ltd gained 7.32 per cent to Rs 5.42 per share from its previous closing of Rs 5.05 per share. The stock’s 52-week high is Rs 5.55 and its 52-week low is Rs 2.51.
Shah Metacorp Ltd., established in 1999, is a manufacturer, exporter, and supplier specializing in stainless steel and mild steel long products. Their stainless-steel offerings include equal angle bars, bright bars, flat bars, flats, ingots, and angles, primarily used in architectural applications, bridges, automotive components, and more. Additionally, they produce mild steel angle bars crucial for transmission line towers, construction, telecom towers, windmills, railways, and other infrastructure projects.
According to Quarterly Results, the net sales increased by 185 per cent to Rs 46.29 crore and net profit increased by 1,762.5 per cent to Rs 23.34 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 143 per cent to Rs 96.77 crore and net profit increased by 158 per cent to Rs 4.26 crore in FY24 compared to FY23.
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The company's board is set to convene on Thursday, August 1, 2024, to deliberate upon and approve the allotment of up to 14,30,00,000 equity shares priced at Re 1 each, as well as an additional 44.5 million equity shares, also valued at Re. 1 each, to be issued upon the conversion of warrants on a preferential basis to both promoters and non-promoters at a minimum price of Rs 4.02 per share. Notably, the company has achieved a debt-free status by fully settling all financial obligations to banks and financial institutions.
The company has a market cap of over Rs 220 crore and has delivered good profit growth of 29 per cent CAGR over the last 5 years. The shares of the company have an ROE of 61 per cent and an ROCE of 26 per cent. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 2.51 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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