1:3 bonus share announced for 3rd consecutive year & FIIs bought 1,31,455 shares: Multibagger penny stock under Rs 30 with 1,100 per cent returns; Scrip trades at high ROE & high ROCE

The stock has an ROE of 35 per cent and an ROCE of 38 per cent.

On Monday, shares of Axita Cotton Ltd plunged 4.38 per cent to Rs 24.89 per share from its previous closing of 26.03 with an intraday high of Rs 25.65 and an intraday low of Rs 24.70. The stock’s 52-week high is Rs 35.39 and its 52-week low is Rs 19.16 per share.

Axita Cotton Limited is engaged in the business of manufacturing, processing and finishing cotton bales and cotton seeds. The company's main business is the ginning and pressing of seed cotton (Kapas) on a work basis and the production of cotton bales and cotton seeds. The company has a market cap of Rs 649.33 crore.

The company's Board of Directors has proposed issuing bonus equity shares at a ratio of 1:3. This means shareholders will receive one new share for every three shares they currently own. The proposal is subject to shareholder approval. The Board is announcing it for the 3^rd consecutive year, earlier 1:3 bonus shares in 2023 and 1:2 bonus shares in 2022.

According to the Quarterly Results, the net sales decreased by 32 per cent to Rs 154.93 crore and the net profit decreased by 38.3 per cent to Rs 3.55 crore in Q1FY25 compared to Q1FY24.In its annual results, the net sales increased by 101.1 per cent to Rs 1,102 crore and net profit increased by 19.4 per cent to Rs 20.33 crore in FY24 over FY23.

The stock has an ROE of 35 per cent and an ROCE of 38 per cent. As of July 2024, FIIs bought 1,31,455 shares and increased their stake to 0.52 per cent stake compared to 0.47 per cent in March 2024. The stock is up by 30 per cent from its 52-week low of Rs 19.16 per share; gave multibagger returns of 820 per cent in just 3 years and a whopping 1,100 per cent in 5 years. 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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