Multibagger Penny Stock Under Rs 30 Hit Upper Circuit After Signing MoUs Worth Rs 485 Crore for Greenfield Hospitality Projects with the Government of Rajasthan

The stock is up by 76.73 per cent from its 52-week low of Rs 15.47 per share and gave multibagger returns of 640 per cent in 5 years.

On Tuesday, shares of Saboo Sodium Chloro Ltd hit a 5 per cent upper circuit to Rs 27.34 per share from its previous closing of Rs 26.04 per share. The shares of the company saw a spurt in volume by more than 3.27 times on BSE.

Saboo Sodium Chloro Limited (SSCL) has initiated a strategic diversification into the hospitality sector by signing two significant Memorandums of Understanding (MoUs) worth ₹485 crore with the Government of Rajasthan. These MoUs will facilitate the development of two luxurious greenfield resorts under the brand name 'Samskara Resorts'. The first resort, to be located in Udaipur (Girwa), Rajasthan, will require an investment of Rs 400 crore and is expected to create 400 direct jobs. The second resort, situated in Jodhpur, Rajasthan, will necessitate an investment of Rs 85 crore and generate 150 direct employment opportunities. Both resorts are slated to commence operations in 2026 and 2027, respectively.

The Government of Rajasthan has provided substantial support to SSCL's hospitality ventures through a comprehensive subsidy scheme. This scheme offers a range of incentives, including a capital subsidy of up to 20 per cent of the Eligible Fixed Capital Investment (EFCI) disbursed over ten years, 100 per cent exemption from stamp duty, conversion charges, and electricity duty for seven years, and additional thrust sector and regional anchor boosters, offering an additional 10-20 per cent subsidy. The total savings accrued over ten years are estimated to exceed ₹150 crore, significantly enhancing the financial viability and competitiveness of these projects. By leveraging government support and its strong financial foundation, SSCL aims to establish a strong foothold in the Indian hospitality industry and deliver exceptional guest experiences.

Earlier, the company took a significant stride towards sustainability by successfully commissioning an additional 150 kW of solar power capacity at its Nawa refinery in Rajasthan. This expansion elevates the refinery's total solar power capacity to 650 kW, reaffirming SSCL's dedication to eco-friendly operations. The newly inaugurated solar power plant, operational since November 6, 2024, is already generating clean and renewable energy. This increased solar capacity is projected to yield substantial financial benefits, including annual cost savings of approximately INR 40,00,000. By leveraging solar energy, SSCL is not only diminishing its dependence on conventional energy sources but also actively contributing to a cleaner and greener planet.

About the Company

Saboo Sodium Chloro Ltd, established in 1993, is a diversified conglomerate with a strong focus on salt production and a diverse range of other ventures. The company is a leading manufacturer and seller of salt, offering a variety of products including Surya Salt, Tota Salt, and Saboo Salt. Beyond salt, Saboo Sodium Chloro Ltd is involved in the production and distribution of spices, guar gum, and renewable energy through wind and solar power projects. Additionally, the company undertakes turnkey projects for salt iodization units and is developing ambitious infrastructure projects like ropeways and luxury hotels and resorts.

The company has a market cap of over Rs 110 crore with a 5-year stock price CAGR of 45 per cent. The stock’s 52-week high is Rs 34.72 and its 52-week low is Rs 15.47. The stock is up by 76.73 per cent from its 52-week low of Rs 15.47 per share and gave multibagger returns of 640 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.