Multibagger penny stock at Rs 23.72 hit upper circuit as the company is into expansion of business in electrical panel manufacturing; details inside!

The stock gave multibagger returns of 333 per cent from its 52-week low of Rs 5.47 per share.

Sharika Enterprises Ltd, a publicly traded company, has announced that its board of directors approved the acquisition of a majority stake in Contronics Switchgear India Private Limited (CSIPL). This move aims to make CSIPL a subsidiary of Sharika Enterprises and expand its product portfolio in electrical panel manufacturing.

CSIPL is a well-established company in the power industry, incorporated in 1988. They specialize in designing and manufacturing a wide range of electrical control panels. The acquisition will allow Sharika Enterprises to leverage CSIPL's expertise and product line, potentially strengthening its position in the market.

Key details of the acquisition include:

• Sharika Enterprises will acquire a 60 per cent stake (4,200 shares) in CSIPL for a total cash consideration of Rs 30,00,000.
• The acquisition is not considered a related party transaction, and no promoter or promoter group has a stake in CSIPL.
• There are no government or regulatory approvals required for this acquisition.
• The acquisition process has begun and is expected to be completed within a reasonable timeframe.

This acquisition signifies Sharika Enterprises' strategic move to broaden its product offerings and potentially gain a competitive edge in the power industry.

Also Read: 1:1 Bonus Share: LIC-backed multibagger penny stock at Rs 4.07; Board allots 15,36,24,538 fully paid-up rights equity shares

About Sharika Enterprises Ltd

Sharika Enterprises Ltd is a seasoned power sector expert with a legacy of expertise in transmission and distribution. The company envisions leading a transformative shift towards a 'Smart Grid' future, fuelled by innovation, cutting-edge technologies, and sustainability. Their significant focus extends to the solar power sector, with a proven track record of successful solar PV project implementations in collaboration with government bodies, PSUs, schools, and the private sector. Sharika Enterprises offers a comprehensive suite of solar solutions, including grid-connected and off-grid systems, hybrid solutions, battery energy storage, EV charging systems, microgrids, real-time monitoring and solar streetlights.

According to Quarterly Results, the net sales increased by 37.23 per cent to Rs 29.36 crore and net profit increased by 459 per cent to Rs 7.71 in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 55.71 per cent to Rs 78.42 crore in FY24 compared to FY23. The company reported a net profit of Rs 1.54 crore in FY24 compared to a net loss of Rs 3.32 per cent in FY23, an increase of 146.4 per cent.

Earlier, the company was awarded a turnkey project by U.P. Power Transmission Corporation Limited (UPPTCL) for supplying and erecting outdoor equipment for two 145 KV Bays at a 400 KV substation located at Rasara, Ballia in Uttar Pradesh. This domestic project valued at Rs 2,94,65,496 needs to be completed within 6 months from the date of award.

Today, shares of Sharika Enterprises Ltd were locked in a 2 per cent upper circuit to Rs 23.72 per share from its previous closing of Rs 23.26. The stock’s 52-week high is Rs 27.16 and its 52-week low is Rs 5.47.  The company has a market cap of over Rs 100 crore. The stock gave multibagger returns of 333 per cent from its 52-week low of Rs 5.47 per share. Investors should keep an eye on this micro-cap stock.

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