Multibagger in just 6 months: This micro-cap minerals manufacturing company receives order worth Rs 70,80,000!

The stock gave multibagger returns of 132 per cent in just 6 months whereas BSE Sensex Index is up by 16.70 per cent.

On Friday, shares of Southern Magnesium & Chemicals Ltd (SMCL) hit a 2 per cent upper circuit to Rs 156.05 per share from its previous closing of Rs 153 per share. The stock also made a new 52-week high of Rs 156.05 per share.

Southern Magnesium & Chemicals Ltd informed that the company received an order for the supply of magnesium powder for an estimated contract value of Rs 70,80,000 which is to be delivered by November 2023 – December 2023.

Southern Magnesium and Chemicals Limited manufactures magnesium metal. The Company manufactures magnesium chips, turnings, granules, and powders. Southern Magnesium and Chemicals serves customers in India.

Talking about the financials, SMCL has a market cap of Rs 46.82 crore with a 3-year stock price CAGR of 120 per cent. The company reported positive numbers in its Quarterly Results and annual results. The net sales increased by 226.24 per cent to Rs 8.57 crore and net profit increased by 777.50 per cent to Rs 3.51 crore in FY23 compared to FY22.

The company's shareholding pattern shows that the promoters own a majority stake of 53.36 per cent, while the Government (Andhra Pradesh Industrial Development Corporation Limited) owns 11.25 per cent, and the remaining 35.39 per cent is held by the public.

The stock gave multibagger returns of 132 per cent in just 6 months whereas BSE Sensex Index is up by 16.70 per cent. The stock has delivered an incredible 772 per cent return over the past two years, and a staggering 1,792 per cent return over the past five years. Investors should keep an eye on this micro-cap stock.

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