Splendid net profit growth of 338.23 per cent: Watch out for this micro-cap stock that hit the upper circuit on June 09!

The stock surged by 38.56 per cent in just 5 days and over 45 per cent in 1 month.

On Friday, the benchmark indices ended the day in red. BSE Sensex Index was down by 0.35 per cent to a level of 62,625.63 and NSE Nifty-50 Index was down by 0.38 per cent to a level of 18,563.40.

Despite the market being in red, shares of Maiden Forgings Ltd jumped 20 per cent upper circuit to Rs 87.24 per share from its previous closing of Rs 72.70. The stock also traded at a new 52-week high of Rs 87.24 per share.

The reason behind the stock hitting back-to-back upper circuits and 52-week highs is that the company announced stellar annual results (FY23). The net sales increased by 5 per cent to Rs 220.82 crore in FY23 compared to net sales of Rs 210.51 crore in FY22. The net profit skyrocketed by 338.14 per cent to Rs 9.61 crore in FY23 compared to a net profit of Rs 2.10 crore in FY22. The EPS for FY23 stood at Rs 9.21 compared to the EPS of Rs 4.20 in FY22, an increase of 119.28 per cent.

Mr Nishant Garg, Managing Director of Maiden Forgings Limited said, “Sales from newer product lines, value added products and effective cost management enabled us to report substantial improvement in EBITDA as well as net profit. Our net profit grew over 4-fold and we expect the trend to continue in FY24. We are optimistic about demand and our strategies to control cost will enable us to report strong profit growth going forward.”

Maiden Forgings Limited is engaged in manufacturing and selling ferrous metal products. The shares of the company saw a spurt in volume by more than 2.15 times on BSE.

The stock surged by 38.56 per cent in just 5 days and over 45 per cent in 1 month. Investors should keep an eye on this micro-cap stock.