Multibagger penny stock under Rs 5; Board announced rights issue!

The net sales skyrocketed by 236.12 per cent and the net profit skyrocketed by 458.94 per cent in FY23 over FY22.

Seacoast Shipping Services Limited announced that the Board of Directors of the Company held a meeting today, July 07, 2023 and have, inter alia: To consider, discuss and decide various terms and conditions in connection with the Rights Issue and other related matters, including the specific terms of the Rights Issue, such as the determination of the Rights Issue price, Rights Issue size, rights entitlement ratio, Record Date and timing of the Rights Issue.

The company approved fundraising by way of issuance of equity shares of the face value of Rs 1 each of the company to its eligible equity shareholders on a rights basis (Rights issue) for a value not exceeding Rs 49 crore. The company will soon announce the record date for the rights issue.

On Thursday, shares of Seacoast Shipping Services Limited plunged 1.78 per cent to Rs 3.87 per share with an intraday high of Rs 3.99 and an intraday low of Rs 3.84.

Seacoast Shipping Services Limited is providing single-window logistics services to exporters and importers. The company has a market cap of Rs 130.29 crore with a 3-year CAGR of 40 per cent. The stock has a PE of 6.58x, a ROE of 36.10 per cent and a ROCE of 38.40 per cent.

According to the financials, the net sales increased by 448.64 per cent to Rs 115.50 crore in Q4FY23 over Q4FY22. The company reported a net profit of Rs 2.77 crore in Q4FY23 compared to a net loss of Rs 2.30 crore in Q4FY22. The net sales skyrocketed by 236.12 per cent and the net profit skyrocketed by 458.94 per cent in FY23 over FY22.

The stock gave multibagger returns of over 140 per cent in just 3 years. Investors should keep an eye on this micro-cap stock.