From Rs 55 to Rs 71.19 per share in just 7 days: Heavy buying in this recently listed fertilizers manufacturing penny stock; hit back-to-back upper circuits & 52-week highs!

On the broader market, the indices were also trading in green with the BSE Mid-Cap Index up by 0.49 per cent and the BSE Small-cap Index up by 0.98 per cent.

Today, the stock market was trading in green with the BSE Sensex Index up by 0.44 per cent at a level of 72,047 and the NSE Nifty-50 Index up by 0.49 per cent at a level of 21,878. On the broader market, the indices were also trading in green with the BSE Mid-Cap Index up by 0.49 per cent and the BSE Small-Cap Index up by 0.98 per cent.

Along with the market in green, one of the Top Gainers on BSE, shares of Nova Agritech Ltd were locked in 5 per cent upper circuit to Rs 71.19 per share from its previous closing of Rs 67.80. The stock was listed on BSE at Rs 55 per share and in 7 days the stock is up by 30 per cent to Rs 71.19 per share.  

Nova Agritech is a leading agri-input manufacturer offering a wide range of products for soil health management, crop nutrition, crop protection, and more. They boast a diverse portfolio with over 600 registered products, a strong dealer network across 17 states, and a subsidiary specializing in crop protection, making them a comprehensive solution provider for farmers across India and Nepal.

An investor who was lucky enough to get an allotment of this IPO saw their portfolio gain a staggering 73.64% since the initial allotment price of Rs 41 per share. This translates to a profit of Rs 11,019 per 365-share lot allocated.

Nova Agritech Ltd.'s IPO attracted strong interest from a variety of investors, with retail investors subscribing 80.20 times, qualified institutions 81.13 times, and non-institutional buyers a significant 233.03 times. Notably, bids exceeding Rs 10 lakh (bNII) were subscribed 231.40 times, while bids below Rs 10 lakh (sNII) attracted even higher demand at 236.27 times. The offering included a fresh issue (funding plant expansion, working capital, subsidiary investment, and general purposes) and an offer for sale (no proceeds to the company).

Demonstrating consistent high performance, the company saw top-line revenue soar 13 per cent to Rs 211 crore in FY23 and net profit surge 43 per cent to Rs 20 crore, mirroring FY22's strong growth. The first half of FY24 maintained the momentum while boasting impressive RoE and RoCE of 38 per cent and 30 per cent respectively. With a P/BV ratio of 3.46 times and a PE ratio of 12 based on annualized FY24 earnings, the issue offers compelling value.

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