Blockbuster results: Net profit of this microcap surged over fourfold; will it hit upper circuit on Wednesday? Know here!
Most of the micro-cap or small-cap stocks are unpopular and being so is one of the biggest traits of potential multi-baggers.
Most of the micro-cap or Small-Cap stocks are unpopular and being so is one of the biggest traits of potential multibagger ">Multi-baggers. Hence, instead of ignoring such companies because of perceived liquidity risks, an investor should look at mitigating the risks of business failure by deep-diving into the broad screening of the financials.
In this article, we would be looking into an unpopular company, which is gaining steam, and lately, it has been moving at an unprecedented clip. Moreover, the stock got locked at an upper circuit in the last trading session. The name of the stock is Magna Electro Castings Ltd, having a market cap of a little over Rs 100 crore. The company is engaged in the manufacturing of cast iron components including grey iron, SG iron, and other iron alloys castings-machined as well as unmachined & steel companies.
The stock has come out with its blockbuster financial results for the quarter ended June 30, 2022.
Key highlights for Q1FY23:
The company reported much-improved quarterly performance in Q1FY23 by registering astonishing healthy growth in the top-line as well as the bottom line.
The total revenue from operations for the quarter ended June 2022 stood at Rs 42.36 crore, up by 89 per cent YoY while the net profit skyrocketed to Rs 3.81 crore with an eye-popping growth of 348 per cent on a YoY basis. The revenue of the company also grew sequentially from Rs 34.82 crore to Rs 42.36 crore i.e. up by nearly 22 per cent.
The operating profit for Q1FY23 stood at Rs 5.85 crore while the operating margin stood firm at 13.81 per cent.
The stock’s book value per share is Rs 185.04 and it trades at a P/B of 1.32.
In the last one week, the stock has risen by 26 per cent while in the last one month, it jumped 41.18 per cent.