Penny stock under Rs 10 hit 20 per cent upper circuit as the company is likely to make an overseas direct investment in AG Corporation Ltd
On Wednesday, shares of the company hit 20 per cent upper circuit to Rs 9.32 per share with a spurt in volume by more than 11.38 times on BSE.
Gautam Gems Ltd informed that a meeting of the Board of Directors of the company is scheduled to be held on Tuesday, September 24, 2024, at the registered office of the company, inter alia, to consider and approve the proposal to make overseas direct investment in AG CORPORATION LTD, a company registered with ‘The Registrar of Companies for England and Wales’ having address at Unit Two, Second Way, Wembley, Greater London, United Kingdom HA9 0YJ.
Gautam Gems Ltd, established in 2014, is a prominent player in the diamond industry, specializing in importing, exporting and manufacturing both rough and polished diamonds. The company offers a diverse range of diamonds, catering to various preferences with their different categories, shapes, cuts, sizes and colours. Their product line includes brilliant round and fancy shapes, ranging from 0.18 carats to 15.00 carats, encompassing D to N colours and all types of fancy colours. Gautam Gems Ltd has built a robust independent sales and distribution network for its products within domestic markets. Their polished diamonds find their way to jewellery manufacturers, wholesalers, retailers and traders, while rough diamonds are primarily acquired by rough diamond traders and manufacturers.
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The company, with a market capitalization of Rs 38 crore, is currently trading at a price-to-book value ratio of 0.62. Despite consistently reporting profits, the company has not declared any dividends to its shareholders. The return on equity (ROE) has been low at 1.75 per cent over the past three years.
Promoters have pledged a significant portion of their holdings, amounting to 31.7 per cent. Moreover, promoter holding has witnessed a decline of 14.6 per cent in the last three years. On Wednesday, shares of Gautam Gems Ltd hit 20 per cent upper circuit to Rs 9.32 per share from its previous closing of Rs 7.77 per share with a spurt in volume by more than 11.38 times on BSE. The stock’s 52-week high is Rs 14.35 and its 52-week low is Rs 7.
Disclaimer: The article is for informational purposes only and not investment advice.