Only buyers in this multibagger penny stock at Rs 2.24; hit upper circuit today - PAT zooms over 900 per cent to Rs 547 lakh!

From Rs 0.87 to Rs 2.24 per share, the stock gave multibagger returns of over 150 per cent from its 52-week low till today’s intraday high.

Today, shares of G G Engineering Ltd hit a 5 per cent upper circuit to Rs 2.24 per share from its previous closing of Rs 2.14 per share. The stock’s 52-week high is Rs 2.97 per share and its 52-week low is Rs 0.87.  The shares of the company saw a spurt in volume by more than 1.40 times on BSE.

Earlier, the Board of Directors of GG Engineering Ltd approved the conversion of 135 million previously issued warrants into the same number of equity shares for non-promoter investors. These investors had already paid 25 per cent of the issue price (Rs 1.32 per share) at the time the warrants were issued, and upon exercising their conversion right and paying the remaining 75 per cent (Rs 0.99 per share), they received the corresponding equity shares.

This conversion increases the company's issued and paid-up capital to Rs 1,53,44,98,800, consisting of 1,53,44,98,800 equity shares of Rs 1 each. The document also details how the 135 million warrants were divided among three individual allottees (Chillypot Trading Private Limited, Fartile Trading Private Limited, and Tumpkinsharp Trading Private Limited) and confirms that all of them converted their warrants into equity shares.

Also Read: Rs 18.50 crore order book: High ROE & high ROCE penny stock in green as the company incorporates a subsidiary by making a strategic investment; details inside!

G G Engineering Limited (GGEL) is an Indian company that manufactures engineering products, infrastructure, and structural steel. The company was established in 2006 and is based in India. GGEL's products are used in many industries, including construction, infrastructure, mega projects, modern buildings, and high-rise residential and commercial projects.

According to Quarterly Results, net sales increased by 75.7 per cent to Rs 7,642.11 lakh and net profit increased by 908.5 per cent to Rs 547.03 lakh in Q4FY24 compared to Q3FY24.In its annual results, net sales increased by 113 per cent to Rs 21,210.50 lakh in FY24 compared to Rs 9,956.70 lakh in FY23. The company reported a net profit of Rs 710.47 lakh in FY24 compared to Rs 793.29 lakh in FY23.

The company has a market cap of Rs 231 crore and has delivered good profit growth of 25.7 per cent CAGR over the last 5 years. The stock is trading at 1.08 times its book value. As of March 2023, promoters of the company own a 1.97 per cent stake while the public owns a 98.03 per cent stake. From Rs 0.87 to Rs 2.24 per share, the stock gave multibagger returns of over 150 per cent from its 52-week low till today’s intraday high.

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