1,950 per cent returns: This multibagger micro-cap stock announces rights issue and major acquisition; share jumps 10 per cent upper circuit!
The stock is up by 110 per cent in 2 years and over 1,950 per cent returns in 3 years.
On Friday, one of the Top Gainers on BSE, shares of Jaykay Enterprises Ltd jumped 10 per cent upper circuit to Rs 81.37 per share from its previous closing of Rs 73.98 per share. The stock also traded at a new 52-week high of Rs 81.37 per share with a spurt in volume by more than 3 times on BSE.
The sudden rise in stock price is due to the announcement of an acquisition and the approval of a rights issue. Jaykay Enterprises Ltd informed that the company, through its wholly-owned subsidiary i.e., JK Defence & Aerospace Limited (JK Defence), has acquired the 76.41 per cent equity stake in Allen Reinforced Plastics Private Limited (Allen). Accordingly, Allen Reinforced Plastics Private Limited has become a subsidiary of JK Defence and a step-down subsidiary of the Company with effect from July 09, 2023. Allen Reinforced Plastics Pvt Ltd is involved in the design, development, manufacture and testing of composite and allied engineering products for the purpose of defence, aerospace and engineering products like missile & rocket components, underwater applications, marine and submarine, gun and accessories.
Additionally, the company has approved the rights issue of shares in the ratio 1:1. The rights issue price is Rs 25 per share for a face value of Rs 1 each. The company will offer 5,84,57,688 equity shares through the issue.
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Jaykay Enterprises Ltd. manufactures synthetic yarn, fiber and fabrics. The Company's products include nylon filament yarn, polyester filament yarn, polyester staple fibers, industrial tire cord yarn/fabric and acrylic staple fiber. Jaykay also manufactures Portland/Pozzolana cement and white cement.
According to the financials, Jaykay Enterprises has a market cap of over Rs 400 crore and has delivered good profit growth of 53.20 per cent CAGR over the last 5 years. The net sales skyrocketed by 270 per cent to Rs 10.34 crore in Q4FY23 over Q4FY22. The net sales increased by 340 per cent to Rs 46.96 crore in FY23 over FY22. Also, the promotors of the company have increased their stake by 4.99 per cent in the last quarter.
The stock is up by 110 per cent in 2 years and over 1,950 per cent returns in 3 years. Investors should keep an eye on this multibagger micro-cap stock.