Penny stock under Rs 10 jumps over 19 per cent as company announces stellar quarterly results; Rs 45 crore rights issue & proposal of sale of entire stake in Hemoc Pharma Pvt Ltd
The stock is up by 46 per cent from its 52-week low of Rs 5.17 per share and gave multibagger returns of 525 per cent in 3 years.
On Wednesday, shares of Deep Diamond India Ltd gained 19.22 per cent to Rs 8 per share from its previous closing of Rs 6.71 per share. At the closing bell, shares of the company were trading at Rs 7.54 per share, up 12.37 per cent with a spurt in volume by more than 5 times on BSE.
Results Update: According to Quarterly Results, the net sales increased by 70 per cent to Rs 0.51 crore and net profit increased by 70.6 per cent to Rs 0.29 crore in Q1FY25 compared to Q1FY24. In its annual results, the company reported net sales of Rs 2.56 crore and net profit of Rs 0.40 crore in FY24.
Rights Issue Update: The company proposes to raise up to Rs 45 crore through a rights issue of equity shares to existing shareholders, subject to regulatory approvals and shareholder consent. This will require increasing the authorized share capital from Rs 10 crore to Rs 15 crore by issuing additional equity shares.
Divestment Stake: The Company has approved the sale of its entire 50 per cent stake in Hemoc Pharma Private Limited, a non-operational joint venture, to an unrelated third party for Rs 5,00,000. The sale agreement was signed on February 10, 2023, and is expected to be completed by September 30, 2024. As Hemoc Pharma has not commenced operations, the transaction is considered an arm's length deal and does not fall under related party or scheme of arrangement regulations.
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About the Company
Deep Diamond India Ltd, established in 1993, specializes in crafting a diverse range of 18K real diamond jewellery, including rings, earrings, pendants, and more, all manufactured in-house. The company offers a unique 100% buyback guarantee on its real diamond jewellery and caters to men with custom-made diamond watches, belts, cufflinks and shirt buttons.
The company has a market cap of Rs 36.23 crore and Stock is trading at 1.18 times its book value. The stock is up by 46 per cent from its 52-week low of Rs 5.17 per share and gave multibagger returns of 525 per cent in 3 years. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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