President of India’s portfolio gains Rs 77,60,89,541 and LIC’s portfolio gains Rs 18,10,25,306 from this multibagger penny stock in just 1 day, scrip hit 52-week high!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 16.60 per share.

Indian markets soared to new heights today, propelled by bullish sentiment and strong investor confidence. Both the Sensex and Nifty reached record levels, with the Sensex breaching the 71,600 mark and the Nifty surpassing the 21,400 threshold. 

Along with the market in green, this multibagger gained 8.75 to Rs 34.43 per share from its previous closing of Rs 31.66; being one of the Top Gainers on BSE & NSE. The stock also made a new 52-week high of Rs 34.43 per share with a spurt in volume by more than 3.29 times on BSE. At the closing bell, shares of the company were trading at Rs 33.85 per share, up 2.19 points or 6.92 per cent.

Hold on! Before we spill the beans about the secret stock, let's unravel the puzzling case of the President's portfolio and LIC's sudden wealth growth. Buckle up, because the details are about to get juicy!

The President of India’s portfolio owns 35,43,78,740 shares or 56.82 per cent and LIC’s portfolio owns 8,26,59,957 or 13.25 per cent stake in the company.

Therefore, the President of India’s portfolio gains Rs 77,60,89,541 (35,43,78,740 shares x Rs 2.19 per share) and LIC’s portfolio gains Rs 18,10,25,306 (8,26,59,957 shares x 2.19 per share) in just 1 day.

Talking about the company, it was incorporated as a public sector undertaking in 1986 to serve the cities of Delhi including NCR and Mumbai including Thane district in India. It started with an objective to provide world-class telecommunication services to its customers with affordable tariffs. The company got Navratna Status in 1997.

The company falls under the BSE Small-Cap Index with a market cap of Rs 2,133 crore with a 3-year stock price CAGR of 45 per cent. The company's financial performance paints a concerning picture. While net sales in Q2FY24 reached Rs 198 crore, a significant jump from the previous year, it was overshadowed by a staggering net loss of Rs 793 crore. This trend continued throughout FY23, with net sales of Rs 935 crore failing to offset a massive net loss of Rs 2,915 crore. This indicates that despite generating revenue, the company is struggling with significant expenses or inefficiencies, leading to substantial losses.

It's time to unveil the stock's identity, and it goes by the name Mahanagar Telephone Nigam Ltd (MTNL). The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 16.60 per share.

Do you own MTNL’s stock in your portfolio? Do let us know in the comments below

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