Heavy Buying: FIIs-backed multibagger penny stock under Rs 80 made an all-time high on January 19, rocketing 240 per cent from its 52-week low!

The stock gave multibagger returns of over 120 per cent in just 1 year and up 240 per cent from its 52-week low of Rs 22 per share.

Today, shares of Sigachi Industries Ltd gained 4.87 per cent and traded at an intraday high of Rs 74.90 per share from its previous closing of Rs 71.42 per share. The shares of the company saw a spurt in volume by more than 1.1 times on BSE and made a fresh 52-week high & all-time high of Rs 74.90 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 2,300 crore 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

The company achieved remarkable growth in Q2FY24, with revenue soaring 20.26 per cent to Rs 99.18 crore. Operating profit followed suit, climbing 21.86 per cent to Rs 22.53 crore. While profit after tax saw a slightly softer increase of 11.33 per cent to Rs 15.12 crore, earnings per share (EPS) continued the positive trend, jumping 11.56 per cent to Rs 4.93, painting a picture of sustained momentum despite a slightly moderated profit growth.

The company's half-yearly results showed mixed performance. Revenue surged 14.37 per cent to Rs 183.88 crore, and operating profit climbed 11.27 per cent to Rs 40.47 crore. However, profitability dipped slightly, with profit after tax declining 1.52 per cent to Rs 25.99 crore and EPS down 0.81 per cent to Rs 8.52, compared to H1FY23.

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 240 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.