Penny Stock Under Rs 15: Microcap Company’s Stock Rallies and Hit Upper Circuit After Announcement of Entry into the Renewable Energy Sector!
The company’s shares have delivered an impressive return of over 120 per cent in the past 1 year.
During Friday's trading session, shares of a company involved in manufacturing stainless steel pipes and tubes surged by 2 per cent, hitting an upper circuit and reaching a new 52-week high of Rs 13.23 on the BSE. This surge followed the company's announcement of its entry into the renewable energy sector.
With a market capitalization of Rs 13.2 crores, Umiya Tubes Ltd’s shares opened in the green at Rs 13.23, up from its previous closing price of Rs 12.98.
The company's new venture will focus on renewable energy, particularly solar energy, and is expected to benefit all stakeholders. To support this shift, the company plans to raise nearly Rs 10 crore through the preferential allotment of equity shares or convertible warrants as an initial equity contribution.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
In a recent regulatory filing with the BSE, Umiya Tubes Limited's Board of Directors, in a meeting held on October 3, approved the modification of the company's Memorandum of Association (MOA) to reflect the adoption of this new line of business.
As per the Quarterly Results, in the Q1 FY25, Umiya Tubes Ltd recorded a revenue of Rs 0.35 crore compared to Rs 0.36 crore. It reported an operating loss of Rs 2.42 crore. The net loss stood at Rs 1.57 crore. Looking at the annual performance, the company generated a revenue of Rs 0.50 crore in FY24 compared to Rs 7.20 crore. The operating loss for FY24 was Rs 1.21 crore with a net loss of Rs 3.40 crore compared to a loss of Rs 4.08 crore in FY23.
Incorporated in 2008, Umiya Tubes Ltd specializes in the manufacturing of stainless-steel pipes and tubes. The company produces decorative stainless-steel tubes and pipes, with a focus on engineering precision. The diameter of these pipes ranges from 9.52 mm to 76.2 mm, while the thickness varies between 0.4 mm and 3.00 mm.
Disclaimer: The article is for informational purposes only and not investment advice.