Penny stock under Rs 20: This cloud kitchen company ventures into Retail Supermarket Chain!

The stock has delivered a return of around 32 per cent in the past year.

Incorporated in 1981, Galaxy Cloud Kitchens Ltd manufactures various food products, including bakery items, desserts, confectionery, meals, and ready-to-eat food.

At their meeting on May 24, 2024, the Board of Directors resolved to initiate a new venture involving the operation of a chain of retail supermarket stores under the name "Galaxy Supermarket." This decision stems from the trial operation of the first store, which commenced on April 18, 2024, for testing purposes. Pending all requisite approvals, the Board intends to proceed with this new business activity based on feedback and customer responses received during the trial period.

Galaxy Supermarket will operate as both a Direct-to-Consumer and Business-to-Business retail chain, primarily focusing on fast-moving consumer goods (FMCG) products. The stores will function as one-stop shops, offering a wide range of products from groceries to dairy to various household necessities, alongside providing curated brands for specific product categories. The company commenced its first pilot supermarket store in Haryana, in April 2024, for testing purposes. Based on feedback and customer response, the company aims to open more stores across India in the future, subject to the receipt of necessary approvals.

The selected locations for these supermarket stores are meticulously curated within Tier 1 and Tier 2 cities of the identified State hub, strategically addressing the demand-supply disparity. This strategic placement aims to facilitate revenue generation and the attainment of operational profits for the Company.

Share Performance:

On Friday, the company's stock closed at around Rs 16.89 per share, with a market capitalisation of Rs 75.90 crore. Additionally, the stock has delivered a return of around 32 per cent in the past year.

Investors must keep this micro-cap stock on their radar.

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