High ROE multibagger penny stock under Rs 10 with 3,000 per cent returns: This micro-cap company reports a turnaround story; PAT jumps 450 per cent!

The stock gave multibagger returns of 650 per cent in 3 years, 1,140 per cent in 5 years and a whopping 3,000 per cent in a decade.

IEL Ltd, founded in 1956, is an Indian company that transitioned from manufacturing to trading chemicals and related services. Originally, they operated a solvent extraction plant but due to competition, they shifted their focus to trading chemicals & colourants and providing marketing and warehouse rental support. The company aims to expand its export and import business for chemicals and commodities but currently faces challenges that are limiting its growth. Additionally, IEL Ltd is looking to diversify into the development of various intermediate and derivative products for the chemical and commodity markets.

The company announced a turnaround story in its Quarterly Results (Q4FY24) and annual results (FY24). According to its quarterly results, the net sales increased by 781.5 per cent to Rs 9.12 crore in Q4FY24 compared to Rs 1.03 crore in Q4FY23. The company reported a net profit of Rs 0.14 crore in Q4FY24 compared to a net loss of Rs 0.04 crore in Q4FY23, increasing by 450 per cent.

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In its annual results, the net sales increased by 55.9 per cent to Rs 17.26 crore in FY24 compared to net sales of Rs 11.07 crore in FY23. The company reported a net profit of Rs 0.26 crore in FY24 compared to Rs 2.37 crore in FY23.  In the previous financial year 2023-2024, the shares of the company ex-traded stock split of equity shares having a face value of Rs 10 to a face value of Rs 1 on September 25, 2023.

Today, shares of IEL Ltd gained 4.30 per cent to an intraday high of Rs 7.75 per share from its previous closing of Rs 7.42. The stock’s 52-week high is Rs 20.59 and its 52-week low is Rs 6.69. The shares of the company saw a spurt in volume by more than 1.44 times on BSE.

The company has a market cap of Rs 25 crore. The share of the company has an ROE of 24 per cent and an ROCE of 15 per cent. The stock gave multibagger returns of 650 per cent in 3 years, 1,140 per cent in 5 years and a whopping 3,000 per cent in a decade.