Penny stock under Rs 5: Heavy buying and upper circuit stock; This shipping logistics company’s profits surged by 515 per cent; must watch!

Profitable micro-cap company with a ROE and ROCE of 28.3 per cent and 21.4 per cent respectively.

This micro-cap company specializes in offering logistics solutions to both exporters and importers. As one of Gujarat's premier freight forwarders, SSSL ranks among the top three in handling agricultural export commodities via containers from the Mundra port. Annually, the company facilitates the shipment of over 5 million metric tons of bulk and unitized goods. Its primary areas of focus include dry bulk logistics, container freight forwarding, and inland road logistics. Seacoast Shipping Limited was incorporated in 2005.

At the start of Friday’s trading session, the stock opened at Rs 4.21 per share, compared to the previous day's closing figure of Rs 4.01 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. Finally, the stock closed the day at Rs 4.21 per share on the BSE. The company's current market capitalisation stands at Rs 226.78 crore, and the stock has generated a return of around 59 per share in the past 6 months.

As per Quarterly Results in Q4 FY24, the company reported a quarterly revenue from operation of Rs 125.02 crore compared to a revenue of Rs 115.50 crore, representing a growth of 8.24 per cent on a YoY basis. The net profit of the company stood at Rs 7.50 crore in Q4 FY24 compared to a net profit of Rs 1.22 crore.

Turning attention to the annual performance of the company, it reported a revenue of Rs 374 crore, compared to Rs 430 crore in FY23 representing a de-growth of 12.90 per cent YoY. Moreover, the company’s net profit stood at Rs 20 crore in FY24 compared to the profit of Rs 14 crore representing a gain of 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.