Penny Stock Under Rs 35: Heavy Buying, Upper Circuit; Profits Surge by 5,700 per cent; A Must-Watch!

Turnaround Story: This micro-cap company’s profits surged by 970 per cent in FY24.

This micro-cap company engaged in trading and exporting yarns. It is a government-recognized Star Trading House, merchant exporter, and trader of various types of yarn, raw cotton, and fabrics. Over the last few years, the company diversified its business portfolio from exporting yarn to trading in the domestic market in various kinds of fabrics. Though the company has not engaged in any export business for several years, it is on the lookout for favorable export deals.

At the start of Monday’s trading session, the stock of Yarn Syndicate opened at Rs 32.95 per share, compared to Friday's closing figure of Rs 31.47 per share on the BSE. The stock has reached the upper circuit price limit of 5 per share, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers. Currently, the stock is at Rs 33.04 per share on the BSE. The company's current market capitalization stands at Rs 71.86 crore, and the stock has generated a multibagger return of around 1,496 per share in just 3 years.

As per Quarterly Results in Q4 FY24, the company reported a quarterly revenue from operation of Rs 2.47 crore while the net profit of the company stood at Rs 1.28 crore in Q4 FY24 compared to a net loss of Rs 0.02 crore compared to a growth of 5678 per cent.

Turning attention to the annual performance of the company, it reported a revenue of Rs 3.90 crore while the company’s net profit stood at Rs 1.40 crore in FY24 compared to the loss of Rs 0.16 crore representing a gain of 971.43 per cent YoY.

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

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