Penny stock under Rs 2 hit 20 per cent upper circuit after receiving an order worth Rs 21 crore and announcing rights issue!

The shares have a PE of 5.87x whereas the industry PE is 26.60x.

On Monday, one of the Top Gainers on BSE, shares of G G Engineering Ltd jumped 20 per cent upper circuit to Rs 1.41 per share from its previous closing of Rs 1.18. At the closing bell, shares of the company were trading at Rs 1.40 per cent, up 18.64 per cent with a spurt in volume by more than 5.04 times on BSE.

Recently, the company has won orders valued at Rs 21 crore for supplying iron raw materials to prominent industrial houses of repute consuming steel as the primary raw material. The company will be completing these supplies within the next 30‐45 days and is anticipating additional orders as well for Q3 of the current financial year 2024. The company has been working on a vertical integration strategy, expanding its role in the supply chain of raw materials, as well as the sales of engineering products in the steel including heavy steel business arenas.

Additionally, has approved the allotment of 49,88,20,215 fully paid-up rights equity shares of the face value of Rs 1 each at a price of Rs 1 per rights equity share to the eligible applicants.

G G Engineering Limited manufactures electric power generators. The company develops diesel generators and engines for power management.              

Earlier, the company announced stellar financial performance for the quarter ended June 30, 2023. The revenue from operations grew by 143.42 per cent to Rs 1894.66 lakh, EBITDA increased by 226.88 per cent to Rs 53.02 lakh and PAT increased by 145 per cent to Rs 33.88 lakh in Q1FY24 compared to Q1FY23.

The shares have a PE of 5.87x whereas the industry PE is 26.60x. Investors should keep this penny stock under the radar.

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