Multibagger penny stock below Rs 5 ventures into Drone, AI, and Charging station for EV; expects sales worth USD 10 million!

The company reported a multifold rise in total income to Rs. 23.03 crore compared to Rs. 0.90 crore in H1FY23.

The Nifty index opened higher at 21,478 but succumbed to selling pressure, correcting down to 21,338. Subsequently, Nifty staged a swift recovery and gained strength in late morning deals, reaching a new record high of 21,505. Finally, it witnessed some profit-taking and concluded the session with a 34-point gain, settling at 21,453.

After a day of correction, Nifty rebounded and breached the 21,500 mark for the first time, ultimately closing the day with moderate gains.

An intriguing development unfolded in a penny stock priced below Rs 5. This particular multibagger penny stock has delivered an outstanding return of 197.30 per cent in the past year, and on Tuesday, it surged nearly 2.5 per cent to Rs 4.40. The company is venturing into new verticals, including drones, Information Technology, AI, Robotics, and charging stations for electric vehicles. The company has already initiated work on the Drone and EV business, aiming for substantial growth in the future. The stock name is Vivanta Industries Ltd. 

In September 2023, the company entered into a Memorandum of Understanding (MOU) with Vivanta Drone Research Centre Tanzania Ltd (VDRCTL), wherein Vivanta Industries Ltd will acquire a 50 per cent stake in VDRCTL for establishing an assembly line and conducting R&D on drones. The company anticipates significant business opportunities from the African continent and is eager to expedite the project. Additionally, in April 2023, the company secured a work order worth USD 5 million from Electric Vehicle Organizational Centre North America Corporation (EVOCNA) for establishing an EV charging and manufacturing unit. The company aims to set up the plant in 18-24 months and the required software in 6-12 months from the date of order receipt. The order focuses on commercializing Electric Vehicle technologies, encompassing vehicle-to-grid, vehicle-to-building, and vehicle-to-load capabilities, demonstrating their commercial viability. The company envisions reaching sales of approximately USD 10 million and above after project establishment.

Remarkably, the company's market capitalization stands at Rs 55 crore, with expectations of achieving sales worth approximately USD 10 million, a noteworthy feat. Nevertheless, it is acknowledged that similar announcements are common in sectors experiencing heightened interest. Contrary to this trend, for H1FY24, the company reported a multifold rise in total income to Rs. 23.03 crore compared to Rs. 0.90 crore in H1FY23. Net Profit during H1FY24 was reported at Rs. 1.01 crore, reflecting a 47 per cent YoY increase from the Rs. 68 lakh net profit reported in H1FY23. In FY23, the company reported a Net Profit of Rs. 1.30 crore on Total income of Rs. 24.81 crore. As of September 2023, the company boasts net reserves amounting to Rs. 4.02 crore. Consequently, it is advisable to keep a close eye on this penny stock!

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