Penny stock under Rs 50: Company announces expansion plan with revenue potential more than company’s market capitalisation!

The company aims to increase its production capacity to 7 lakh meters per month, intending to expand in anticipation of a surge in existing orders.

Kalahridhaan Trendz Limited, a prominent player in the textile industry, is gearing up for significant expansion as it prepares to meet growing demand and enhance its market presence. The company has announced plans to boost its production capacity to 7.00 lakh meters per month, a strategic move aimed at catering to the evolving needs of its customers and capitalizing on emerging opportunities in the market.

This expansion initiative comes at a time when Kalahridhaan Trendz Limited is experiencing a surge in orders, signaling a robust demand for its products. By augmenting its production capacity, the company is positioning itself to efficiently fulfill existing orders and capitalize on future growth prospects.

Moreover, the company anticipates that the increase in production capacity will have a positive impact on its profit margin. Through enhanced operational efficiency and economies of scale, Kalahridhaan Trendz Limited expects to achieve a significant boost in profitability. It forecasts a 25 per cent increase in its profit margin on a year-to-year basis, underscoring the potential benefits of this strategic endeavor.

With the anticipated increase in production capacity and improved profit margins, Kalahridhaan Trendz Limited is poised for strong financial performance in the coming year. The company expects a substantial rise in revenue, projecting a revenue range of Rs 75 crores to Rs 100 crores for the current fiscal year.

Kalahridhaan Trendz went public with an IPO price of Rs 45 per share, and its shares debuted on the stock exchange on February 23, 2024. The company has not yet released its Quarterly Results so far.

The shares of Kalahridhaan Trendz, a micro-cap company closed the day at Rs 49.45 per share on the NSE, with the company's current market capitalisation standing at Rs 84.99 crore. Additionally, the stock has delivered a return of around 22 per cent in the past month.

The company has great potential to yield multibagger returns in the future. Investors must keep this stock on their radar.