FIIs bought 37,19,299 shares of this high ROE & ROCE multibagger penny stock: Board likely to announce bonus shares; PAT zooms over 180 per cent!

The stock gave multibagger returns of 460 per cent in just 2 years and a whopping 1,240 per cent in 3 years.

The Indian stock markets were down on Friday, with the BSE Sensex Index closing 0.28 per cent lower at 64,000 and the NSE Nifty-50 Index down by 0.17 per cent at 19,732.

Despite the overall market weakness, one particular penny stock, Axita Cotton Ltd., bucked the trend and traded higher. The stock is currently trading below Rs 30 and has been a multibagger in the past.

The company will be held on Thursday, November 23, 2023, at the Registered Office of the company, inter-alia, to consider and approve the following:
1. To recommend & approve the proposal to issue bonus shares to the existing equity shareholders of the company;

2. Any other business with the permission of the chairman.

Earlier, the company had declared an interim dividend of Rs 0.10 per equity share (representing 10 per cent) of a face value of Rs 1 each fully paid up for the financial year 2023-24. The dividend was ex-traded on November 17, 2023.

On Friday, shares of Axita Cotton Ltd gained 0.31 per cent to Rs 26.14 per share from its previous closing of Rs 26.06 with an intraday high of Rs 26.96 and an intraday low of Rs 26.09. The stock has a 52-week high of Rs 83 and a 52-week low of Rs 24.70. The shares of the company saw a spurt in volume by more than 1.07 times on BSE.

According to the Quarterly Results, the net sales increased by 324.23 per cent to Rs 388.78 crore and the net profit skyrocketed by 184.07 per cent to Rs 6.51 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 108.13 per cent to Rs 616.64 crore and the net profit increased by 81.74 per cent to Rs 12.26 crore in H1FY24 compared to H1FY23. In its annual results, the net sales decreased by 32.42 per cent to Rs 552.6 crore and net profit increased by 11 per cent to Rs 17.04 crore in FY23 over FY22.

Axita Cotton Limited is engaged in the business of manufacturing, processing and finishing cotton bales and cotton seeds. The company's main business is the ginning and pressing of seed cotton (Kapas) on a work basis and the production of cotton bales and cotton seeds. It also trades Kapas, cotton bales and cotton seeds. The company has a market cap of over Rs 500 crore.

The stock has an ROE of 38.4 per cent and an ROCE of 49.1 per cent. As of September 2023, FIIs bought 37,19,299 shares or 1.89 per cent stake in this company (Currently, FIIs own a total of 5.32 per cent stake).

The stock gave multibagger returns of 460 per cent in just 2 years and a whopping 1,240 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.