Dolly Khanna bought 14,32,638 shares and FIIs bought 7,30,736 of this multibagger penny stock under Rs 40; scrip trades at a low PE & high ROE!

The shares of the company have a PE of 5.38x whereas the industry PE is 15.5x with an ROE of 28.69 per cent.

The Indian benchmark indices ended the trading session in red with BSE Sensex Index down by 0.83 per cent at 65,877. In parallel on the sectoral front only the Auto Index and Healthcare Index were in green rest of them were trading in red.

One multibagger penny stock was shining on the exchanges as an ace investor Dolly Khanna took a fresh entry into this sugar company and FIIs increased their stake.  

Dolly Khanna bought 14,32,638 shares or 1.31 per stake and FIIs have increased their stake to 0.65 per cent (bought 7,30,736 shares) in the company.

Revealing the name of a sugar stock is like unwrapping a sweet treat. The stock name is KCP SUGAR & INDUSTRIES CORPORATION LTD.

K.C.P. Sugar and Industries Corporation Ltd is engaged in the manufacturing of sugar as well as its associated products such as rectified spirit, extra neutral alcohol, ethanol, incidental cogeneration of power etc. The company has a market cap of Rs 430.86 crore.

According to the Quarterly Results:

• Revenue from Operations grew by 30.06 per cent from Rs 73.68 crore in Q1FY23 to Rs 95.84 crore in Q1FY24.
• EBITDA skyrocketed by 1,958.62 per cent from Rs 1.87 crore in Q1FY23 to Rs 38.46 crore in Q1FY24.  
• PAT skyrocketed from a net loss of Rs 1.43 crore in Q1FY23 to a net profit of Rs 30.68 crore in Q1FY24.

According to the annual results:

• Revenue from operations decreased by 9.44 per cent from Rs 319.40 crore in FY22 to Rs 289.26 crore in FY23.
• The EBITDA increased by 139.51 per cent from Rs 30.03 crore in FY22 to Rs 71.93 crore in FY23.
• PAT skyrocketed by 1,497.82 per cent from Rs 3.58 crore in FY22 to Rs 57.15 crore in FY23.

The shares of the company have a PE of 5.38x whereas the industry PE is 15.5x with an ROE of 28.69 per cent. The stock is up by 70 per cent in just 1 year and gave multibagger returns of over 150 per cent in 3 years.

On Wednesday, shares of KCP Sugar & Industries Corporation Ltd plunged 1 per cent to Rs 38 per share from its previous closing of Rs 38.38. The stock traded at an intraday high of Rs 39.60 and an intraday low of Rs 37.

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