Multibagger penny stock under Rs 10 with 1,825 per cent returns: This micro-cap company bags new order worth Rs 150 million from Sarveshwar Foods Ltd!

The stock gave multibagger returns of 480 per cent in just 2 years and a whopping 1,825 per cent in 3 years.

On Friday, one of the Top Gainers on BSE, shares of Integra Essentia Ltd hit a 5 per cent upper circuit to Rs 7.96 per share from its previous closing of Rs 7.24. At the closing bell, shares of the company were trading at Rs 7.32 per share with a spurt in volume by more than 6.43 times on BSE. The stock gave multibagger returns of 480 per cent in just 2 years and a whopping 1,825 per cent in 3 years.

The sudden rise in the stock price was due to the company receiving an order and announcing stellar Quarterly Results and half-yearly results. Here are the details:

Order Update: Integra Essentia Limited announced that its agro-business bagged advance orders amounting to Rs 150+ million from one of India’s premier business houses Sarveshwar Foods Limited, and its material subsidiary Himalayan Bio Orgainc Foods Limited (Sarveshwar Group). The order will be completed in the current fiscal year i.e., by March 31, 2024.

The company has nurtured a long-term understanding with most of its customers and is eying to supply Agro-Products worth about Rs 900 million per year to the Sarveshwar Group which is an ISO 22000:2018 and USFDA (United States Food and Drug Administration) certified company besides having BRC (the biggest global standard for food safety), Kosher, NPPO USA & CHINA along with NOP -USDA Organic certifications for its products.

To expand its business operations in the Agro-based Products sector, Integra Essentia Limited is forming long-term partnerships with reputable businesses in India and abroad. This strategy is aimed at tapping into the growing demand for essential goods and a variety of lifestyle products. The company will utilize modern sourcing, production, and marketing techniques to provide a wide range of bulk and speciality materials and services.
Results: The company's consolidated financial performance improved significantly in Q2FY24 and H1FY24 compared to the same periods in the previous fiscal year. The company's revenue from operations grew by 17.11 per cent in Q2FY24 and 7.79 per cent in H1FY24. EBITDA increased by 420.98 per cent in Q2FY24 and 407.23 per cent in H1FY24, and PAT increased by 248 per cent in Q2FY24 and 217 per cent in H1FY24. EBITDA margins improved by 1116 bps and 809 bps, respectively, and PAT margins improved by 644 bps and 426 bps, respectively.

According to the annual results, the net sales increased by 171 per cent to Rs 24,141.41 lakh and net profit skyrocketed 600 per cent to Rs 666.67 lakh in FY23 over FY22. These results indicate that the company is performing well and is on track to achieve its financial goals.

Two micro-cap companies, G G Engineering Ltd and Integra Essentia Ltd, are merging to create a larger and stronger entity. The boards of directors of both companies have approved the merger, which they believe will allow them to pool their resources and expertise, and offer a wider range of products and services to their customers.

The companies' officers are proceeding with the merger in consultation with advisors, including Price Waterhouse & Co LLP. In addition, the boards have approved the redemption of debentures that were issued by Integra Essentia Ltd in 2013. The debentures will be redeemed for a lump-sum payment of Rs 1,50,00,000. This merger is a positive development for both companies and their shareholders. It will create a stronger company that will be better positioned to compete in the market.

Integra Essentia Limited also has plans to fuel the growth by diversifying the product portfolio while also exploring opportunities to strengthen the core via acquisitions/mergers which are at different stages of consideration/negotiations.

Integra Essentia Ltd is in the business of life essentials viz., food (agro products), clothing (textiles and garments), infrastructure (materials and services for construction and infrastructure development) and energy (materials, products and services for renewable energy equipment and projects). The company has a market cap of Rs 334 crore.

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