Multibagger penny stock under Rs 50: This micro-cap heavy electrical company receives order worth Rs 4,100 lakh from Megha Engineering & Infrastructures Ltd!

The stock has a PE of 9.09x whereas the industry PE is 45.4x and gave multibagger returns of 140 per cent in just 6 months.

On Friday, one of the Top Gainers on BSE, shares of Jyoti Ltd were locked in a 5 per cent upper circuit to Rs 39.92 per share from its previous closing of Rs 38.02. The shares of the company saw a spurt in volume by more than 2.05 times on BSE.

The sudden rise in the stock price is due to the company informing that it has secured orders of Rs 4,100 lakhs (excluding GST) for the design, manufacturing, supply and supervision of the erection and commissioning of 32 nos. vertical turbine pumps along with 32 nos. HT induction motors with spares from Megha Engineering & Infrastructures Limited, Hyderabad for Southern Link Projects, Gujarat. The order is to be executed by September 30, 2024.

Jyoti Ltd offers hydraulic and electrical products and services and designs and manufactures a wide range of Pumps and EPC Pumping Systems from concept to commissioning. The company is comprised of 2 divisions viz. project division and the switchgear division.

Talking about the financials, Jyoti Ltd has a market cap of Rs 68.38 crore with a 3-year stock price CAGR of 75 per cent. The company reported positive numbers in its Quarterly Results and annual results. In FY23, net sales increased by 30 per cent to Rs 155 crore and net profit skyrocketed 300 per cent to Rs 4 crore compared to FY22.

The stock has a PE of 9.09x whereas the industry PE is 45.4x and gave multibagger returns of 140 per cent in just 6 months. Investors should keep an eye on this micro-cap stock.

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