Penny stock under Rs 5: This micro-cap company receives export order for 63,277 MT pure cotton; hits 5 per cent upper circuit!

The stock has a 52-week high of Rs 9.99 per share and a 52-week low of Rs 2.30 per share.

Today, one of the Top Gainers on NSE, shares of Shree Ram Proteins Ltd jumped 5 per cent upper circuit to Rs 2.40 per share from its previous closing of Rs 2.30.

Shree Ram Proteins Ltd. (NSE: SRPL), a leading player in the cottonseed processing industry, has announced that it has received an order for the export of 63277.20 MT of 100 per cent cotton yarn NE 20 to 40 CCH to the Rudra International Shanghai Co. Ltd.

The order will be executed before August 15, 2023 ((Last Date of Shipment). The Company is expecting to generate revenue of approx. Rs 50 to Rs 60 crore per annum from this order which may be resulting in 6 per cent of profit annually.

Additionally, the company’s rights issue is currently open, where the company has given 1 rights entitlement to its shareholders for each existing equity share held as on record date. The rights equity shares are being offered at Rs 2.30 per share. The issue will close on 10 August 2023.

Shree Ram Proteins Ltd is engaged in the business of solvent extraction of cotton seeds, as well as the import and export of cotton seeds, cotton seeds oil cake, cotton processing, linter, de-linter, and cotton processing.

The company has a market cap of Rs 103 crore and reported positive numbers in both Quarterly Results and annual results. Previously the company traded ex- split having a face value of Rs 10 each in 10 equity shares of Rs 1 each which had an ex-record date of May 16, 2023.

The shares of the company have a PE of 26x whereas the sectoral PE is 39x. The stock has a 52-week high of Rs 9.99 per share and a 52-week low of Rs 2.30 per share. Do you own this micro-cap FMCG stock in your portfolio?