Heavy buying in this multibagger IT-stock: Scrip Hits back-to-back upper circuits; Jumps 57.5 per cent from 52-week low!
The stock is up by 57.5 per cent from its 52-week low of Rs 240 per share and gave multibagger returns of 300 per cent in 3 years.
On Wednesday, one of the Top Gainers on BSE, shares of 63 Moons Technologies Ltd jumped 5 per cent upper circuit to Rs 377.90 per share from its previous closing of Rs 359.54 per share. The stock’s 52-week high is Rs 688.80 and its 52-week low is Rs 240. The shares of the company saw a spurt in volume by more than 4 times on BSE. In the recent trading sessions, the stock has been hitting back-to-back upper circuits.
The sudden surge in the company's stock price can be attributed to a significant development: the company has received a proposal for an amicable one-time settlement (OTS) from the NSEL Investors Forum (NIF). This forum represents a large group of traders who were impacted by the payment defaults that occurred on the National Spot Exchange Ltd. (NSEL) platform over a decade ago. The NIF suggests that the company and NSEL should explore a mutually beneficial settlement with the affected traders to resolve the ongoing litigation stemming from these defaults. The company has disclosed this development to the stock exchange by SEBI regulations. The NIF has indicated that they will consult with the traders they represent and subsequently present a concrete settlement proposal once they have secured the support of a majority of these traders. Additionally, the NIF has suggested that some brokers who were members of NSEL might also participate in the resolution process. The company's board of directors has taken note of this development and will continue to provide updates to the exchange if there are any further material developments.
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63 Moons Technologies Limited develops trading technologies. The company offers a trading platform for multi-asset classes such as equity, commodity, and equity and forex-based derivatives. 63 Moons Technologies provides warehousing and collateral management services worldwide.
The company has a market cap of Rs 1,741.30 crore and has delivered good profit growth of 52.4 per cent CAGR over the last 5 years. The promoters of the company own 45.63 per cent of the shares, while FIIs own 4.12 per cent and DIIs own 0.09 per cent as of June 2024. The remaining 50.15 per cent of the shares are owned by the public. Additionally, the stock is trading at 0.48 times its book value of Rs 726.
The shares of the company have a PE of 10x whereas the industry PE is 40x. The stock is up by 57.5 per cent from its 52-week low of Rs 240 per share and gave multibagger returns of 300 per cent in 3 years. Investors should keep an eye on this multibagger small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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