Penny stock under Rs 5: This micro-cap scrip hit upper circuit & 52-week high on quarterly results announcement; do you own it?
The stock is providing a dividend yield of 1,220 per cent and EPS of Rs 48.30.
On Thursday, the benchmark indices ended the trading session in the red. BSE Sensex Index was down by 0.47 per cent at a level of 65,688.18. On the BSE, 1,613 stocks advanced, 1,994 declined, and 134 were unchanged out of a total of 3,741 stocks traded.
Despite being the market in green, shares of Taparia Tools Ltd surged 5 per cent upper circuit to Rs 2.54 per share from its previous closing of Rs 2.42. The stock also made a new 52-week high of Rs 2.54 per share.
The company announced its positive standalone Quarterly Results (Q1FY24) were one of the reasons for the increase in stock price. The net sales increased by 5.70 per cent to Rs 191.37 crore, the operating profit increased by 6.83 per cent to Rs 25.90 crore and the net profit increased by 6.44 per cent to Rs 18.99 crore in Q1FY24 compared to Q1FY23.
Additionally in the current financial year, the company announced bonus shares in the ratio of 4:1 and a final dividend of Rs 77.50 per share for its equity shareholders as of the record date. The ex-bonus date was July 11, 2023, and the ex-dividend date was June 26, 2023.
Taparia Tools has a market cap of Rs 3.86 crore. According to the annual results, the net sales increased by 14.37 per cent to Rs 764 crore and net profit increased by 10.77 per cent to Rs 72 crore in FY23 over FY22.
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The company has a strong track record of profit growth, with a CAGR of 37.2 per cent over the past 5 years. It is also debt-free and has a good ROE (27.90 per cent) & ROCE (37.30 per cent) and dividend payout (48.60 per cent), which are all signs of a healthy business. The stock is providing a good dividend yield of 1,220 per cent and EPS of Rs 48.30. Additionally, the stock is trading at 0.01 times its book value of Rs 178. Investors should keep an eye on this penny stock Taparia Tools under the watch list.
Disclaimer: The article is for informational purposes only and not investment advice.