Multibagger penny stock below Rs 10; Board likely to announce bonus shares, dividend and buyback of shares!

The stock gave multibagger returns of 110 per cent in 2 years and a whopping 335 per cent in 3 years.

Akshar Spintex Ltd informed that a meeting of the Board of Directors of the company will be held on Friday – December 15, 2023, at 04.00 p.m. at the Registered Office of the company to transact the following agenda:

1. To consider the proposal for the bonus issue.
2. To consider and declare the interim dividend for the financial year 2023-24.
3. To consider and approve the buyback of shares.
4. Any other business(s) with permission of the chair, if any.

Earlier, the company received an order worth Rs 171 crore from Beximcorp Textiles, Tejgaon, Dhaka-1208. The order includes supplying 7400 MT processed cotton yarn in 4 phases and has to be completed in 4 phases within 18 months from the date of acceptance.

According to the Quarterly Results, the net sales increased by 132 per cent to Rs 43.6 crore and net profit increased by 111 per cent to Rs 0.9 crore in Q2FY24 compared to Q2FY23. In its annual results, the company reported net sales of Rs 135.5 crore and a net loss of Rs 2.76 crore in FY23.

Jamnagar, Gujarat-based, Akshar Spintex Limited (ASL) was incorporated in June 2013. ASL manufactures carded, combed and compact cotton yarn of finer quality ranging between 16s to 44s counts. The company have reduced its debt and its current debt is Rs 17.3 crore. The company has a market cap of Rs 191 crore.

On Friday, shares of Akshar Spintex Ltd hit 5 per cent upper circuit to Rs 7.64 per share. The stock’s 52-week high is Rs 8.4 and its 52-week low is Rs 4.85.

The stock gave multibagger returns of 110 per cent in 2 years and a whopping 335 per cent in 3 years. Investors should keep an eye on this micro-cap stock.

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