Promoters of the company bought 1,70,00,000 shares & FIIs bought 80,00,000 shares of this multibagger penny stock; scrip hit upper circuit!

The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 13.20 per share.

On Friday, the Indian benchmark indices ended the day in green with BSE Sensex Index up by 0.34 per cent and NSE Nifty-50 Index up by 0.44 per cent.  The market capitalization of BSE-listed companies is 3,56,78,737.59 crore or Rs 3.57 lakh crore as of December 24, 2023.

Along with the market in green, one multibagger stock was locked in a 2 per cent upper circuit to Rs 39.13 per share from its previous closing of Rs 38.37. The stock’s 52-week high is Rs 54.90 per share and its 52-week low is Rs 13.2. In the recent trading sessions, the stock has been hitting back-to-back upper circuits. The shares of the company saw a spurt in volume by more than 1.30 times on BSE.

Before we declare the champion stock, let's dissect the reasons behind this stock's relentless climb to new peaks. Here are the details:

The Board proposes a preferential issue of 2.5 crore new equity shares (Rs 10 each) for Rs 25 crore, allocating 1.7 crore shares to promoter Vatsal Agarwal (1.6 crore) and Novapro Global Resources Pvt Ltd. (10 lakh) in conversion of a Rs 17 crore loan into equity.

Furthermore, FIIs have bought 80,00,000 shares in the issue and these funds will be used for business expansion. Nexpact Ltd bought 25,00,000 shares, Eminence Global Fund PCC bought 27,50,000 shares and A G Dynamic Funds Ltd bought 27,50,000 shares.

The stock name is STRATMONT INDUSTRIES LTD.

Stratmont Industries Ltd, founded in 1984, is a trading and manufacturing company specializing in coking coal and LAM coke. They produce customized low ash metallurgical coke in various specifications and sizes to cater to their client's specific needs. Their sole manufacturing unit, located in Kachchh District, boasts a production capacity of 36,000 Metric Ton Per Annum (MTPA) of LAM Coke.

The shares of the company have a ROE of 33 per cent and an ROCE of 21 per cent. The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 13.20 per share. Investors should keep an eye on this micro-cap stock.

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