Multibagger penny stock below Rs 5 hit upper circuit as the Board fixed record date for bonus shares in ratio of 1:5

The stock is up by 27 per cent from its 52-week low of Rs 3.86 per share and gave multibagger returns of over 300 per cent in 3 years.

Today, one of the Top Gainers on BSE, shares of Akshar Spintex Ltd hit 5 per cent to upper circuit to an intraday high of Rs 4.91 per share from its previous closing of Rs 4.68. At the closing bell, shares of the company were trading at Rs 4.68 per share, at the same level as the previous closing. The stock’s 52-week high is Rs 8.4 and its 52-week low is Rs 3.86.

Akshar Spintex Ltd informed that the Board of Directors of the company approved and recommended the issue of bonus shares in the ratio of 1:5 i.e., 1 new bonus equity share for every 5 existing fully paid-up equity shares of Rs 1 each, subject to approval by the members of the company. The company fixed the record date as Thursday, February 08, 2024.

Earlier, the company ex-traded an interim dividend of 1 per cent i.e., Rs 0.01 per equity share of the face value of Rs 1 each for the financial year 2023-2024. The record date for payment of the interim dividend was January 04, 2023.

Additionally, the company received an order worth Rs 171 crore from Beximcorp Textiles, Tejgaon, Dhaka-1208. The order includes supplying 7,400 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 117 crore.

The stock is up by 27 per cent from its 52-week low of Rs 3.86 per share and gave multibagger returns of over 300 per cent in 3 years. Investors should keep an eye on this micro-cap stock.