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Multibagger penny stock at Rs 28 with 7,000 per cent returns; Company receives trading approval from BSE & NSE for issuance of bonus shares!
Kiran Shroff

Multibagger penny stock at Rs 28 with 7,000 per cent returns; Company receives trading approval from BSE & NSE for issuance of bonus shares!

The stock gave multibagger returns of 275 per cent in just 1 year, 5,000 per cent in 3 years and a whopping 7,000 per cent in 5 years.

Today, shares of Lorenzini Apparels Ltd plunged 2 per cent to Rs 27.95 per share from its previous closing of Rs 28.50 per share. The stock’s 52-week high is Rs 33.02 while its 52-week low is Rs 6.78.

Lorenzini Apparels Ltd., established in 2007, designs, manufactures, and markets ready-made garments for men and women through their own "Monteil" brand, offering formal, semi-formal, and casual wear, both in their exclusive stores and online, while also utilising third-party contractors for some garment production. The company has a market cap of Rs 437 crore.

In a move to increase share liquidity and affordability, Lorenzini Apparels Ltd. implemented a stock split and the bonus issue was the ex-date as March 28, 2024. The company subdivided the face value of existing shares from Rs 10 to Rs 1 each. Shareholders on the record date received 6 new bonus shares (face value Rs 1 each) for every 11 existing shares (face value Rs 10 each) they held, effectively increasing their total share ownership. This corporate action also increased the authorized share capital of the company from Rs 11,70,00,000 to Rs. 17,30,00,000.

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The company has received trading approval from the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) dated April 15, 2024, for the issuance of bonus shares and the effective date is Tuesday, April 16, 2024.

According to the Quarterly Results, the net sales increased by 4.3 per cent to Rs 13 crore and net profit skyrocketed by 1,294 per cent to Rs 2.37 crore in Q3FY24 over Q3FY23. The net sales increased by 79 per cent to Rs 43.76 crore and net profit skyrocketed by 2,000 per cent to Rs 2.52 crore in FY23 over FY22.

The stock gave multibagger returns of 275 per cent in just 1 year, 5,000 per cent in 3 years and a whopping 7,000 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

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

DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. This service is available as part of the "Festive Savings" combo offer discounted at 51%. Do download the service details here.

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