Penny stock under Rs 5: Heavy buying, hits upper circuit today, Profits surged by 47 per cent in FY24; must watch!

Profitable micro-cap company with a ROE and ROCE of 10.5 per cent and 8.90 per cent respectively.

Ahmedabad-based micro-cap company specializes in processing clothing fabrics. The company sources grey fabric from the market and dyes it according to client specifications. Additionally, it performs job work for wholesale cloth merchants and trades in grey cloth. Serving domestic as well as international clients, the company has been recognized as a "One Star Export House" by the Director General of Foreign Trade, Ministry of Commerce and Industry. Vinny Overseas Limited was incorporated in 1992.

At the start of the day's trading session, the stock opened at Rs 4.09 per share, compared to the previous day's closing figure of Rs 4.04 per share on the BSE. The stock has reached the upper circuit price limit of 5 per share, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers. Finally, the stock closed the day at Rs 4.24 per share on the BSE. The company's current market capitalisation stands at Rs 98.63 crore, and the stock has generated a return of around 9 per share in the past 6 months it has not delivered multibagger returns in the past so far since its IPO.

As per Quarterly Results in Q4 FY24, the company reported a quarterly revenue from operation of Rs 25.54 crore compared to a revenue of Rs 26.35 crore, representing a de-growth on a YoY basis. The net profit of the company stood at Rs 0.36 crore in Q4 FY24 compared to a net profit of Rs 1.09 crore.

Turning attention to the company's annual performance, it reported a revenue of Rs 112.71 crore, compared to Rs 106.41 crore in FY23 representing a growth of 6 per cent YoY. Moreover, the company’s net profit stood at Rs 3.54 crore in FY24 compared to a profit of Rs 2.40 crore representing a gain of 47 per cent YoY.

According to the company's shareholding pattern, the promoters of the company hold 71.87 per share while the remaining 28.13 per share is held by the public or retail investors.

Investors must keep this micro-cap stock on their radar.

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