Multibagger penny stock at Rs 5.17 hit upper circuit & 52-week high; Recently the company gave Rs 20/share dividend to its shareholding: Scrip trades at low PE & high ROE
The stock gave multibagger returns of 135 per cent from its 52-week low of Rs 2.20 per share.
On Thursday, the benchmark indices ended the trading session in the red. BSE Sensex Index was down by 0.14 per cent at a level of 80,040. On the BSE, 2,049 stocks advanced, 1,877 declined, and 97 were unchanged out of a total of 4,023 stocks traded.
Though the market was in red, shares of Taparia Tools Ltd jumped 5 per cent upper circuit to Rs 5.17 per share from its last closing of Rs 4.93. The stock also made a new 52-week high of Rs 5.17 per share while its 52-week low is Rs 2.20 per share. The stock gave multibagger returns of 135 per cent from its 52-week low of Rs 2.20 per share.
The shares of the company ex-traded a final dividend of Rs 20 per share having a face value of Rs 10 each i.e., 200 per cent as final dividend for fiscal year 2024. The record was July 22, 2024.
According to standalone Quarterly Results, the net sales increased by 12.6 per cent to Rs 219.52 crore, the operating profit increased by 56.3 per cent to Rs 38.40 crore and the net profit increased by 62.1 per cent to Rs 28.91 crore in Q4FY24 compared to Q4FY23. In its annual results, net sales increased by 8.4 per cent to Rs 828.53 crore and net profit increased by 38 per cent to Rs 99.77 crore in FY24 compared to FY23.
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Taparia Tools, a company with a market capitalization of only Rs 7.85 crore, trades at a very low valuation of just 0.02 times its book value. Despite this low valuation, the company offers a very attractive dividend yield of 893 per cent. This strong profitability is reflected in its historical record of good profit growth, averaging 32.6 per cent over the past five years.
Taparia Tools also boasts a healthy return on equity (ROE) of 30 per cent for the past three years, and consistently distributes a significant portion of its profits as dividends, with a payout ratio of 68.9 per cent. To top it off, the company has become more efficient in managing its working capital, reducing its requirements from 78.2 days to 61.5 days. Investors should keep an eye on this penny stock Taparia Tools under the watch list.
Disclaimer: The article is for informational purposes only and not investment advice.
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