Multibagger penny stock under Rs 1 locked in upper circuit after promoter bought 30,00,000 shares via open market; Plans to increase stake up to 10 per cent!

The stock gave multibagger returns of 250 per cent in just 2 years, 650 per cent in 3 years and a whopping 1,500 per cent returns in 5 years.

On Wednesday, the benchmark indices were trading in green with the BSE Sensex Index up by 0.29 per cent at 65,262. As of August 30, 2023, the market capitalisation of BSE-listed companies amounts crossed Rs 310 lakh crore, accompanied by 239 stocks hitting a 52-week high and 34 stocks reaching a 52-week low. 

Along with the market reacting positively today, shares of this multibagger financial services company hit a 5 per cent upper circuit to Rs 0.97 per share from its previous closing of Rs 0.93 per share. The stock is hitting back-to-back upper circuits in the recent trading sessions.

Before we get to the name of the stock, let's first understand why its price suddenly rose. Here are the details:

Sagar Portfolio Services Ltd (a promoter group entity) has informed that today they have acquired 30,00,000 equity shares of the company from the open market and for that, the relevant disclosures have been filed with the exchange. It is further informed that the company will increase the shareholding by buying a 2 per cent to 10 per cent stake through open market transactions.

Prior to the promoter group increasing the stake in the company, it was also noticed that UK-based Asset Management Company Alliance Global Blanco is likely to acquire a 24 per cent stake in the company. Followed by the company venturing into the media financing business for Indian web series and short films which are to be released on platforms like Netflix, Amazon Prime and Hotstar.

The multibagger penny stock that has gained significant momentum and is generating excitement is none other than VISAGAR FINANCIAL SERVICES LTD.

Visagar Financial Services Ltd. is a leading Non-Banking Financial Company (NBFC) that is in the business of investing in securities of listed and unlisted companies. Its investment portfolio is diversified across sectors viz., financial services, education, real estate, media, etc.

The company has a market cap of Rs 56.64 crore with a 3-year stock price CAGR of 93 per cent. According to the Quarterly Results, the net sales increased by 2,484 per cent to Rs 59.17 crore in Q1FY24 compared to net sales of Rs 2.29 crore in Q1FY23. The company reported a net profit of Rs 0.44 crore in Q1FY24 compared to a net loss of Rs 0.06 crore in Q1FY23. In FY23, the net sales increased by 182 per cent to Rs 48 crore in FY23 compared to net sales of Rs 17 crore in FY22. The company reported a net profit of Rs 1 crore in FY23.

The stock gave multibagger returns of 250 per cent in just 2 years, 650 per cent in 3 years and a whopping 1,500 per cent returns in 5 years. The stock is trading at 0.92 times its book value of 1.06. Investors should keep an eye on this micro-cap stock.

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