Penny stock under Rs 50 hit upper circuit as company to import aromatic chemicals worth over Rs 4 billion!
The shares of the company saw a spurt in volume by more than 4.75 times on BSE and up by 46.44 per cent from its 52-week low of Rs 33.03 per share.
Pradhin Ltd has entered into an agreement of Rs 4 billion with PYTHON CHEMICAL COMPANY LIMITED, Thailand. This transaction involves the import of aromatic chemicals, specifically PERFUMERY COMPOUND BASE 909, to supply major perfume factories in Kannauj, Uttar Pradesh. This marks the largest deal in the company's history, representing a strategic step towards expanding its market presence and diversifying its product offerings. The imported chemicals are expected to boost Pradhin Ltd.'s revenue streams and enhance its position in the aromatic chemical sector.
The agreement between Pradhin Ltd. and PYTHON CHEMICAL COMPANY LIMITED is primarily focused on the import of the specified aromatic chemicals. There is no existing shareholding relationship between the two companies. Key terms of the agreement include the order value of Rs 4 billion, the product details (PERFUMERY COMPOUND BASE 909), and the intended market (major perfume factories in Kannauj). This transaction is seen as a strategic move by Pradhin Ltd. to tap into the growing demand for aromatic chemicals in the Indian market and explore potential future collaborations with global suppliers.
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Earlier, the company strategically diversified its business operations into the high-growth sectors of Steel and Real Estate. This expansion aligns with the company's long-term vision of capitalizing on emerging market opportunities and expanding its footprint in these industries. As part of this new venture, Pradhin Ltd. is actively negotiating with Reliance Industries Ltd., a leading Indian conglomerate, to secure a significant order worth up to Rs 1 billion (Rs 100 crore). The proposed order entails the supply of Fe 600 grade TMT Bars and Beams to Reliance Industries' Jamnagar facility.
The company has a market capitalization of Rs 17.65 crore. On Monday, shares of Pradhin Ltd were locked in a 5 per cent upper circuit to Rs 48.37 per share from its previous closing of Rs 46.07 per share. The company's shares saw a spurt in volume by more than 4.75 times on BSE and up by 46.44 per cent from its 52-week low of Rs 33.03 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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