Multibagger below Rs 15: Is this small-cap a hidden gem or is there a twist; know more here!
The company holds the status of an approved Channel Partner of the Ministry of New and Renewable Energy (MNRE), Government of India.
On Friday,the shares of Urja Global Limited zoomed by 18.11 per cent. Additionally, the stock touched the upper circuit of Rs 12.92 apiece on BSE. Furthermore, the scrip witnessed a spurt in volume by more than 4.25 times. The company's current market capitalisation is Rs 668.38 crore.
From a technical outlook, as of November 17, 2023, the stock's 200-day moving average (DMA) stood at Rs 9.85, while the 50-DMA was observed at Rs 10.06. The current share price on BSE is Rs 12.72. In a recent development, the 50-DMA has crossed above the 200-DMA, signalling a robust and sustained upward trend over the long term.
About company:
Established in 1992, Urja Global Ltd. is a prominent player in the Renewable Energy sector, specializing in the development and operation of renewable energy projects. The company is actively involved in the installation, commissioning, and maintenance of both off-grid and grid-connected Solar Power Plants. Additionally, Urja Global engages in the deployment of decentralized Solar Applications and trades solar products along with Lead Acid Batteries.
Notably, Urja Global Ltd holds the status of an approved Channel Partner of the Ministry of New and Renewable Energy (MNRE), Government of India. This recognition positions the company as a reliable and authorized entity in the renewable energy domain, emphasizing its commitment to sustainable and clean energy initiatives.
But there is a catch as we zoom into the company's shareholding pattern, From December 2020 to September 2023, there is a discernible decline in the promoters' stake in the company, gradually decreasing from 31.55 per cent to 22.56 per cent. This trend indicates a consistent reduction in the ownership interest held by the promoters over the specified period.
Despite the decrease in stake, a noteworthy aspect is that there is no pledge observed on the promoters' holdings. This absence of pledged shares suggests that the reduction in stake is not accompanied by any encumbrances on the shares held by the promoters.
Analyzing the pledge status is crucial in understanding the financial health and risk associated with a company's ownership structure. In this case, the absence of pledged shares may be considered a positive indicator, as it signifies a lower level of financial leveraging or encumbrances on the promoters' holdings.
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Furthermore, the stock has witnessed significant buying activity as it has given multibagger returns of more than 332 per cent in last 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.