Multibagger penny stock under Rs 20: This micro-cap company reports a 3,355 per cent jump in net profit!

Multibagger penny stock under Rs 20: This micro-cap company reports a 3,355 per cent jump in net profit!

On Friday, shares of Ashima Ltd gained 10 per cent to an intraday high of Rs 15.70 per share from its previous closing of Rs 14.26. At the closing bell, shares of the company were trading at Rs 15.44 per share, up 8.27 per cent with a spurt in volume by more than 2.26 times on BSE. The stock’s 52-week high of Rs 18.25 and its 52-week low is Rs 12.05.

Ashima Limited manufactures synthetic textiles, including denims and fabrics. The Group has a strategic alliance with Cone Mills Corporation, USA, a large denim maker, which owns approximately 8 per cent of Ashima. The company announced stellar Quarterly Results (Q2FY24) and half-yearly results (H1FY24) for the fiscal year 2024. Here are the details:

Quarterly Results: The net sales increased by 54 per cent to Rs 58.66 crore, profit before tax increased by 1,174 per cent to Rs 33.12 crore and net profit increased by 3,355 per cent to Rs 29.37 crore in Q2FY24 compared to Q2FY23. The EPS for Q2FY24 stood at Rs 1.53.

Half-yearly Results: The net sales increased by 31 per cent to Rs 126.95 crore in H1FY24 compared to H1FY23. The company reported a net profit of Rs 27.42 crore in H1FY24 compared to net loss of Rs 1.55 crore in H1FY23, an increase of 1,869 per cent. The EPS for H1FY24 stood at Rs 1.63.

The company had a market cap of Rs 296 crore with a 3-year stock price CAGR of 29 per cent. The stock gave multibagger returns of 105 per cent in 3 years and a whopping 600 per cent in a decade. Investors should keep an eye on this Small-Cap metals stock.

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