Multibagger penny stock under Rs 50: This micro-cap company forms a joint venture with Saudi National Projects Investment Ltd for business expansion!

The stock gave multibagger returns of over 100 per cent from its 52-week low.

Sigachi MENA FZCO, a wholly owned subsidiary of Sigachi Industries Limited, and Saudi National Projects Investment Ltd (SNP), an advisory investment firm, have announced the formation of a joint venture (JV), Sigachi Arabia, to enter the rapidly growing Saudi Arabian market.

Sigachi Arabia will be a holding company that will create separate entities to manage Sigachi’s core verticals viz. Pharma (excipients and APIs), Food and Nutrition, and Operations and Management (O&M). In about 3 years, a manufacturing facility is also planned to be set up in Riyadh to initially cater to the local market and later, to serve the GCC countries. Sigachi MENA FZCO will hold a 75 per cent stake and SNP, 25 per cent in the JV.
On the occasion, the Management added, “We are excited to partner with SNP to establish our presence in the Saudi Arabian market,” said Mr. Amit Raj Sinha, CEO of Sigachi Industries Limited. “SNP’s deep understanding of the local market and regulatory landscape, as well as their track record of success in executing and closing deals, make them the ideal partner for us.”

Earlier, the company announced that the Board of Directors of the company have approved a stock split of existing 1 equity share with a face value of Rs 10 each into 10 equity shares with a face value of Rs 1 each. The record date was Monday, October 09, 2023.

Sigachi Industries was incorporated in 1989. It is engaged in the manufacturing of Microcrystalline Cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry.

The company has a market cap of Rs 1,285 and has delivered good profit growth of 44.50 per cent CAGR over the last 5 years. The net sales increased by 20.80 per cent to Rs 302 crore and net profit increased by 10 per cent to Rs 44 crore in FY23 over FY22.

On Friday, shares of Sigachi Industries gained 13.75 per cent to a new 52-week high of Rs 43.85 per share from its previous closing of Rs 38.55 per share. The shares of the company saw a spurt in volume by more than 6 times on BSE.

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 21.95 per share. Investors should keep an eye on this Small-Cap pharma stock.

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