Penny stock under Rs 2: Back-to-back upper circuits in this micro-cap scrip after receiving order worth Rs 56.6 crore from Overseas Metal & Alloys Pvt Ltd!

The stock is up by 30 per cent in just 5 days.

On Tuesday, the benchmark India indices started the day on a positive note with the NSE Nifty-50 Index up by 28 points or 0.14 per cent at a level of 19,334.

Along with the market in green, shares of the micro-cap cable & conductor company were locked in a 5 per cent upper circuit to Rs 1.10 per share from its previous closing of Rs 1.05. The stock’s 52-week high is Rs 3.73 and its 52-week low is Rs 0.80.

In the recent trading session, this stock is hitting back upper circuits because the company has received a substantial order from Overseas Metal & Alloys Pvt Ltd, a prominent player in the industry. This order is worth Rs 56.6 crore and represents a significant step forward in our mission to provide top-quality products and services to our valued customers.

The order includes 4 Core HT Power Cables (Quantity – 1,20,000 meters) & Aluminium ACSR Weasel Conductor (Quantity – 1,20,000 metres) and will be delivered within 25 days from LOI.

The penny stock name is GODHA CABCON & INSULATION LTD.

Godha Cabcon & Insulation Ltd manufactures aluminium conductors, which have applications in overhead electricity transmission and distribution lines. Its manufacturing unit is located in Indore.

According to the financials, GCI has a market cap of Rs 73.3 crore. The company is also debt-free and its current debt is just Rs 2.5 crore which is 3.41 per cent of its market cap. The company reported net sales of Rs 0.07 crore and net loss of Rs 0.10 crore in Q1FY24. The company is projected to report robust financial results for Q2FY24, as revenue is expected to increase significantly due to a recent order.

The stock is up by 30 per cent in just 5 days. Investors should keep an eye on this micro-cap stock.

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