Heavy Buying: FIIs-backed multibagger penny stock under Rs 10 hit upper circuit & 52-week high; PAT zooms over 200 per cent!

Kiran Shroff
Heavy Buying: FIIs-backed multibagger penny stock under Rs 10 hit upper circuit & 52-week high; PAT zooms over 200 per cent!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 3.83 per share.

The Indian stock markets ended the day in green on Wednesday, with the BSE Sensex Index up 0.05 per cent to 69,584.60 and the NSE Nifty-50 Index surging 0.10 per cent to 20,926.35.

Along with the market in green, this multibagger stock defied the trend and traded in the green being one of the Top Gainers on BSE. The stock hit a 20 per cent upper circuit to Rs 8.01 per share from its previous closing of Rs 6.68 per share. The stock also made a new 52-week high of Rs 8.01 per share with a spurt in volume by more than 23.26 times on BSE.

The penny stock name is EAST WEST HOLDINGS LTD.

East-West Holding Limited is engaged in providing logistics and allied solutions through its wholly-owned subsidiary East West Freight Carriers Limited. The Company provides services in the trade of Global Logistics and Freight Forwarding. The company has a total investment of 40 crores in its subsidiary. East-West Holding Limited a micro-cap company has a market cap of Rs 100 crore.

The company has a market cap of over Rs 100 crore. The company's net sales decreased by 20.85 per cent from Rs 54.87 crore in Q1FY24 to Rs 43.43 crore in Q2FY24. However, the net profit skyrocketed by 200 per cent from Rs 0.03 crore in Q1FY24 to Rs 0.09 crore in Q2FY24. As of September 2023, Foreign Institutional Investors (FIIs) have significantly increased their stake in the company, holding 6.78 per cent of its shares. This represents a dramatic increase from their zero holding in June 2023, highlighting a growing interest among foreign investors in the company's prospects.

Despite the recent surge in the company's stock price, there are no immediate news or developments that could directly explain the increase.  Earlier during the current financial year, the company through Wholly owned Subsidiary (WOS) East West Freight Carriers Limited) have secured a contract for 1 year from The Indian Institute of Petroleum, Dehradun which is one of the 37 constituent laboratories of the Council of Scientific and Industrial Research, dedicated to R&D in the hydrocarbon sector. This 1-year contract with The Indian Institute of Petroleum, Dehradun is expected to generate Rs 1.50 crore in revenue for the company.

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 3.83 per share. Investors should keep an eye on this penny stock.

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

DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.

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