Ashish Kacholia-backed multibagger penny stock bags new orders worth Rs 305 crore from Torrent PowerGrid Ltd and Oman, UAE – Scrip hit upper circuit & 52-week high!
The stock gave multibagger returns of 565 per cent from its 52-week low of Rs 5.18 per share.
On Thursday, shares of Jyoti Structures Limited hit a 5 per cent upper circuit to Rs 34.45 per share from its previous closing of Rs 31.25. The stock also made a fresh new 52-week high of Rs 34.45 per share while its 52-week low is Rs 5.18.
The sudden rise in the stock price was due to the company announcing that they received an order from Torrent PowerGrid Limited for an EPC work of a 400 KV multi-circuit transmission line in Gujarat. The contract is valued at Rs 290 crore including GST and is to be executed in 18 months.
Additionally, the company has also secured a contract for the design and prototype testing of towers for the 400 kV double circuit Oman – UAE Interconnector Project. The contract is valued at USD 1.8 million (approx. Rs 15 crore) and is to be executed in 6 months.
Jyoti Structures Limited was incorporated in 1974. The company is engaged in electricity, transmission, distribution and substation. The registered office of the Company is in Mumbai. Jyoti Structures, a micro-cap company with a market capitalization of over Rs 2,000 crore, saw its net sales skyrocket 487 per cent to Rs 81.46 crore in Q2FY24 compared to Q2FY23. This remarkable turnaround was further emphasized by a swing from a net loss of Rs 4.03 crore in the previous quarter to a net profit of Rs 11.20 crore in Q2FY24.
The company's annual results were equally impressive, with net sales surging 5,123 per cent to Rs 229.23 crore in FY23 compared to FY22. While FY23 saw a net loss of Rs 4.07 crore, it was a significant improvement from the Rs 42.47 crore net loss in FY22.
An Indian ace investor, Ashish Kacholia has expressed confidence in the future of a stock by purchasing 1,80,00,000 warrants for Rs 13.20 each, at a total cost of Rs 23.76 crore. This comes despite the stock's current price of Rs 34.45 being far below its all-time high of Rs 305.4 per share.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
The company is also planning a rights issue of equity shares to raise up to Rs 175 crore. Eligible shareholders will have the opportunity to purchase new shares at a price and on terms to be determined. This will strengthen the company's financial position and allow it to pursue new opportunities and business expansion. Existing shareholders will have the chance to participate and potentially increase their ownership stake. More details will be announced later.
The stock gave multibagger returns of 565 per cent from its 52-week low of Rs 5.18 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
For more such updates on the go, Click here to join our WhatsApp Channel