Ashish Kacholia-backed multibagger penny stock: This micro-cap company has received in-principle approval for listing 7,00,00,000 equity shares & bags orders worth Rs 305 crore!

The stock gave multibagger returns of 374 per cent from its 52-week low of Rs 5.18 per share.

Today, shares of Jyoti Structures Limited plunged 2.96 per cent to Rs 24.55 per share from its previous closing of Rs 25.30 with an intraday high of Rs 25 and an intraday low of Rs 24.05. The stock’s 52-week high is Rs 35.80 per share while its 52-week low is Rs 5.18 per share. The shares of the company saw a spurt in volume by more than 1.50 times on BSE.

Jyoti Structures Limited was incorporated in 1974. The company is engaged in electricity, transmission, distribution and substation. The registered office of the company is in Mumbai. Jyoti Structures, a micro-cap company with a market capitalization of over Rs 2,000 crore, saw its net sales skyrocket 487 per cent to Rs 81.46 crore in Q2FY24 compared to Q2FY23. This remarkable turnaround was further emphasized by a swing from a net loss of Rs 4.03 crore in the previous quarter to a net profit of Rs 11.20 crore in Q2FY24.  

The company's annual results were equally impressive, with net sales surging 5,123 per cent to Rs 229.23 crore in FY23 compared to FY22. While FY23 saw a net loss of Rs 4.07 crore, it was a significant improvement from the Rs 42.47 crore net loss in FY22.

The Company has gotten approval to list 7,00,00,000 new equity shares (face value worth Rs 2 each) converted from preferential compulsorily convertible preference shares on the BSE and NSE stock exchanges. Additionally, they're planning a rights issue to raise up to Rs 175 crore by offering existing shareholders the chance to buy new shares at a yet-to-be-determined price, which will strengthen the company's finances, fuel expansion, and allow current shareholders to potentially increase their ownership stake. Details will be announced later.

Earlier, the company secured two contracts: a Rs 290 crore EPC work for a 400 KV multi-circuit transmission line in Gujarat for Torrent PowerGrid Limited to be completed in 18 months, and a USD 1.8 million (approx. Rs 15 crore) contract for the design and prototype testing of towers for the 400 kV double circuit Oman – UAE Interconnector Project to be completed in 6 months.

An Indian ace investor, Ashish Kacholia has expressed confidence in the future of a stock by purchasing 1,80,00,000 warrants for Rs 13.20 each, at a total cost of Rs 23.76 crore. This comes despite the stock's current price of Rs 25 being far below its all-time high of Rs 305.4 per share.

The stock gave multibagger returns of 374 per cent from its 52-week low of Rs 5.18 per share. Investors should keep an eye on this micro-cap stock.

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