Penny Stock Under Rs 15: Company Manufactures Optical Fibre Cable for 5G Network, Heavy Buying Witnessed in the Stock!
With a market capitalization of just Rs 194 crore, the shares of the company have generated an impressive return of 35 per cent in just three months
The shares of Aksh Optifibre Limited have witnessed a significant surge this month. On Wednesday, the stock commenced trading at Rs 10.86, remaining flat compared to the previous day's closing price of Rs 10.81. During the intraday session, the stock exhibited a remarkable 12.85 per cent surge, accompanied by a significant trading volume.
Upon scrutinizing today's share volumes, it becomes apparent that there has been a substantial increase of over 2.4 times in trading volumes compared to its average volumes on the BSE on Wednesday. Finally, the company’s shares concluded the day at Rs 11.93, which was 10.36 per cent or Rs 1.12 up from the previous day’s closing price.
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The stock's 52-week high and low are Rs 14.35 and Rs 8.01, respectively. With a market capitalization of Rs 194 crore, the stock has showcased outstanding performance in recent periods, yielding a remarkable 21 per cent return in the last month and an impressive 35 per cent return in the past three months.
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Financial Performance
In the June quarter of FY24, the company's revenue from operations experienced a decline of 27 per cent YoY, going from Rs 79.93 crore to Rs 58.69 crore. The operating profit of the company fell from Rs 14.53 crore to Rs 7.74 crore. On a sequential basis, it decreased significantly from Rs 12.54 crore to Rs 7.74 crore. The operating profit margin stood at 13.2 per cent.
On the other hand, the net loss of the company amounts to Rs 1.80 crore, compared to a profit of Rs 1.61 crore during the corresponding quarter last year.
The company's return on capital employed (ROCE) and return on equity (ROE) are at 9 per cent and 8 per cent, respectively. The book value of the company is Rs 4.64, which means the stock is trading at a price-to-book value of 2.6 times in the market.
Business Overview:
Aksh Optifibre Limited (AOL) was founded in 1986. The company is engaged in manufacturing and selling Optical Fibre, Optical Fibre Cable, Reinforced Plastic Rods, Impregnated Glass Roving Reinforcement, and ophthalmic lenses. The company caters to both domestic and international markets. Additionally, the company provides e-Governance services, including 10,000-plus eGovernance kiosks in the state of Rajasthan. It also offers smart city/turnkey solutions and FTTH.
Disclaimer: This article is for informational purposes only and not investment advice.