Promoter of the company sold 14,98,10,518 shares of this penny stock under Rs 5; Board announces rights issue!

The stock has a PE of 10.8x, an ROE of 26 per cent and an ROCE of 28 per cent.

Today, shares of Seacoast Shipping Services Limited gained 0.49 per cent to Rs 4.08 per share with an intraday high of Rs 4.16 and an intraday low of Rs 4. The stock has a PE of 10.8x, an ROE of 26 per cent and an ROCE of 28 per cent.

Seacoast Shipping Services Ltd (SSSL), established in 2005, is a leading logistics provider in Gujarat, India, specializing in dry bulk logistics, container freight forwarding, and inland road logistics. They have grown into one of the largest freight forwarders in the state and are among the top 3 for handling agricultural exports in containers from Mundra port. Annually, SSSL facilitates the transportation of over 5 million metric tons of bulk and unitized cargo across the globe.

The Board of Directors considered raising funds by issuing new equity shares with a face value of Re 1 each to the company's existing shareholders through a rights offering. The total amount to be raised would not exceed Rs 49 crore, subject to regulatory approvals. A Rights Issue Committee was formed to decide the specific terms of the offering, including the number of shares offered to each shareholder, the price per share, the timeline for the offering, and the appointment of any intermediaries needed.

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Talking about the financials, the company has a market cap of over Rs 200 crore. According to its Quarterly Results, the net sales increased by 8.25 per cent to Rs 125.02 crore and net profit skyrocketed by 518 per cent to Rs 7.50 crore in Q4FY24 over Q4FY23. In its annual results, the net sales decreased by 13 per cent to Rs 374.16 crore and the net profit increased by 42 per cent to Rs 20.29 crore in FY24 over FY23.

The promoter of the company - Manishkumar Raichand Shah sold 14,98,10,518 shares and decreased the total promoter holding to 0.04 per cent compared to 44.55 per cent in March 2023. Investors should keep an eye on this micro-cap stock.

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