FIIs-backed multibagger penny stock under Rs 60 gained 14 per cent & made fresh 52-week high on January 02; Rallies over 120 per cent in 1-year!

The stock gave multibagger returns of 168 per cent from its 52-week low of Rs 22 per share.

Today, shares of Sigachi Industries Ltd gained 14 per cent and traded at an intraday high of Rs 58.90 per share from its previous closing of Rs 51.72 per share. The shares of the company saw a spurt in volume by more than 7 times on BSE and made a fresh 52-week high of Rs 58.90 per share.

Sigachi Industries was incorporated in 1989. It is engaged in the manufacturing of Microcrystalline Cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry. The company has a market cap of over Rs 1,700 and has delivered good profit growth of 45 per cent CAGR over the last 5 years.  

Earlier, Sigachi Industries strengthens its global reach with a strategic joint venture in Saudi Arabia, eyeing significant growth in the region. Through its subsidiary, Sigachi has partnered with a local firm to establish Sigachi Arabia, a holding company overseeing its core businesses like pharmaceuticals and food.

A planned manufacturing facility in Riyadh within three years will initially cater to the local market before expanding across the GCC, solidifying Sigachi's position in a key market. Meanwhile, Sigachi bolsters its MENA expertise by appointing two industry veterans as advisors, ensuring strategic guidance for future success.

Results

Quarter Results (Q2FY24 vs Q2FY23)

• Total revenue stood at Rs 99.18 crore, up 20.26 per cent over Q2FY23. 
• Operating profit stood at Rs 22.53 crore, up 21.86 per cent over Q2FY23.  
• Profit After Tax stood at Rs 15.12 crore, up 11.33 per cent over Q2FY23.  
• The EPS for Q2FY24 is Rs 4.93 whereas in Q2FY23 was Rs 4.42, an increase of 11.56 per cent.  

Half-yearly Results (H1FY24 vs H1FY23)

• Total revenue stood at Rs 183.88 crore, up 14.37 per cent over H1FY23. 
• Operating profit stood at Rs 40.47 crore, up 11.27 per cent over Q4FY23.  
• Profit After Tax stood at Rs 25.99 crore in H1FY24 compared to Rs 26.39 crore in H1FY23.  
• The EPS for H1FY24 is Rs 8.52 whereas in H1FY23 was Rs 8.59.  

According to annual results, the net sales increased by 20.80 per cent to Rs 302 crore and net profit increased by 10 per cent to Rs 44 crore in FY23 over FY22.

FIIs have increased their stake to 2.46 per cent in October 2023 compared to 0.95 per cent in September 2023. The stock gave multibagger returns of over 120 per cent in just 1 year and up 168 per cent from its 52-week low of Rs 22 per share. Investors should keep an eye on this Small-Cap pharma stock.

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