Turnaround story in this multibagger penny stock below Rs 10: This micro-cap logistics company reports a 244 per cent jump in net profit
The stock is down by 33 per cent from its 52-week high of Rs 11.47 per share while it gave multibagger returns of over 100 per cent from its 52-week low of Rs 3.83 per share.
East-West Holding Limited is engaged in providing logistics and allied solutions through its wholly-owned subsidiary East West Freight Carriers Limited. The Company provides services in the trade of Global Logistics and Freight Forwarding. The company has a total investment of 40 crores in its subsidiary. East-West Holding Limited a micro-cap company has a market cap of Rs 98 crore.
The company announced its Quarterly Results (Q3FY24) and nine-month results (9MFY24) for the financial year 2024. According to the quarterly results, the company reported net sales of Rs 42.04 crore in Q3FY24 while the company reported net sales of Rs 43.43 crore and 63.55 crore in Q2FY24 and Q3FY23 respectively. The company's financial health has seen a dramatic turnaround, with its net profit surging by 244 per cent to Rs 0.31 crore in Q3FY24 compared to the previous quarter. This marks a significant improvement from a net loss of Rs 1.22 crore in the same period last year, highlighting a remarkable comeback for the company.
The company's nine-month results (9MFY24) showed a 28.61 per cent decrease in net sales to Rs 140.34 crore compared to Rs 196.57 crore in 9MFY23. However, there was a turnaround in net profit, with a profit of Rs 0.44 crore compared to a loss of Rs -1.18 crore in 9MFY23.
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Today, shares of East West Holdings Ltd plunged 0.12 per cent to Rs 7.70 per share from its previous closing of Rs 7.71 per share with an intraday high of Rs 7.71 and an intraday low of Rs 7.42. The stock is down by 33 per cent from its 52-week high of Rs 11.47 per share while it gave multibagger returns of over 100 per cent from its 52-week low of Rs 3.83 per share.
Earlier, East West Holdings Ltd experienced a surge in popularity as its logistics subsidiary, East West Freight Carriers Limited, secured two major contracts with prominent research institutions. The recent renewal of their CHA service contract with India's top university, IISc Bangalore, is expected to generate Rs 18-22 crore, while a separate contract with The Indian Institute of Petroleum, Dehradun, adds another Rs 1.5 crore to their revenue stream.
According to the shareholding pattern of the company, the promoters own a 61.28 per cent stake, FIIs own a 3.69 per cent stake and the public owns 35.03 per cent of the company as of December 2023.
Disclaimer: The article is for informational purposes only and not investment advice.
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