Heavy buying is witnessed in this penny stock at Rs 69; scrip gained over 14 per cent and PAT zooms 73.5 per cent to Rs 9.64 crore; do you own it?

The shares of the company saw a spurt in volume by more than 2 times with over 14 lakh quantity traded. 

The Indian stock market was trading flat today, with both the Sensex and Nifty indices with marginal gains. The BSE Sensex Index is at 71,858, up 0.1 per cent, while the NSE Nifty-50 Index is at 22,140, up 0.08 per cent.

Despite the flat headline indices, broader market indices performed better. The BSE Mid-Cap and Small-Cap indices are in the green, up 0.35 per cent and 0.25 per cent respectively. This suggests that there was some buying interest in smaller companies, even though the larger companies were largely flat.

One of the Top Gainers on the BSE today was Nova Agritech Ltd, whose shares surged 14.4 per cent to an intraday high of Rs 69. This is a significant gain for the stock, which has been on a tear since its listing on the BSE at Rs 55 per share. Today's intraday high represents a 25.5 per cent increase from the listing price. The shares of the company saw a spurt in volume by more than 2 times with over 14 lakh quantity traded. 

According to the consolidated Quarterly Results, the net sales increased by 40.8 per cent to Rs 78.48 crore and net profit increased by 73.5 per cent to Rs 9.64 crore in Q3FY24 compared to Q3FY23. In its nine-month results, the net sales increased by 35.3 per cent to Rs 181.70 crore and net profit increased by 61.2 per cent to Rs 20.02 crore in 9MFY24 compared to 9MFY23.

Nova Agritech Ltd is a leading manufacturer in the agricultural input sector, specializing in products tailored for soil health management, crop nutrition, and crop protection. Engaging in the manufacturing, distribution, and marketing of a wide range of product categories including those for soil health management, crop nutrition, biostimulants, biopesticides, Integrated Pest Management (IPM), technological innovations, and crop protection, the company operates through its subsidiary, Nova Agri Sciences Private Limited.

By FY23, Nova Agri had acquired 629 product registrations, spanning various categories such as soil health management, crop nutrition, and crop protection, with plans for further expansion evidenced by applications for 26 new registrations under Nova Agritech Limited (NATL). With a robust dealer network comprising approximately 10,900 dealers, of which around 6,200 are active, Nova Agritech extends its reach across 16 states in India and also maintains a presence in Nepal, reinforcing its commitment to serving agricultural needs comprehensively and effectively.

Demonstrating consistent high performance, the company saw top-line revenue soar 13 per cent to Rs 211 crore in FY23 and net profit surge 43 per cent to Rs 20 crore, mirroring FY22's strong growth. The first half of FY24 maintained the momentum while boasting impressive ROE and ROCE of 38 per cent and 30 per cent respectively. With a P/BV ratio of 3.46 times and a PE ratio of 12 based on annualized FY24 earnings, the issue offers compelling value. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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