Zenith Multi Trading DMCC bought 25,00,000 shares of this multibagger penny stock under Rs 35; scrip gains 9 per cent!

Kiran Shroff
Zenith Multi Trading DMCC bought 25,00,000 shares of this multibagger penny stock under Rs 35; scrip gains 9 per cent!

The stock gave multibagger returns of 127.5 per cent from its 52-week low of Rs 13.1 per share.

Indian stock markets shattered records today, with the Sensex surging 1,106 points (1.64 per cent) to 68,587.82 and the Nifty soaring 334 points (1.65 per cent) to 20,602.5. Both indices reached new 52-week highs in a spectacular display of bullishness.

Along with the market in green, this multibagger penny stock gained 9.28 per cent to an intraday high of Rs 29.8 per share from its previous closing of Rs 27.27.

The stock name is Pritika Auto Industries Ltd.

Pritika Auto Industries is engaged in the manufacturing of tractor and automobile components. It is among the leading manufacturers of machined castings in India.

A Foreign institutional investor (FII), Zenith Multi Trading DMCC bought 25,00,000 shares or a 2.73 per cent stake in this company via preferential issue of shares (warrants). Equity shares have a face value of Rs 2 and issue a price of Rs 19 each aggregating to Rs 4,75,00,000 or Rs 4.75 crore.

The company has a market cap of over Rs 250. According to the Quarterly Results, the company reported net sales of Rs 93.7 crore and net profit of Rs 4.75 crore in Q2FY24 compared to net sales of Rs 100 crore and net profit of Rs 5 crore in Q2FY23. In its annual results, net sales increased by 24 per cent to Rs 362 crore and net profit increased by 15 per cent to Rs 16 crore in FY23 over FY22.

The company's commitment to growth and operational excellence has recently been further solidified by a significant milestone at its subsidiary, Pritika Engineering Components Limited. The successful commencement of commercial production at their new state-of-the-art plant in Punjab marks a pivotal moment. This expansion, boasting a 24,000-ton capacity (including the subsidiary capacity of Meeta Casting), not only strengthens the company’s market position but also lays the foundation for future expansion and innovation. This achievement underscores the company’s unwavering dedication to propelling Pritika Engineering Components Limited towards even greater heights.

The stock gave multibagger returns of 127.5 per cent from its 52-week low of Rs 13.1 per share. Investors should keep an eye on this micro-cap stock.

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

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