Debt-free multibagger penny stock under Rs 10 hit upper circuit & 52-week high; Company reports 1,762.5 per cent jump in PAT
The stock gave multibagger returns of over 160 per cent from its 52-week low of Rs 2.51 per share.
On Monday, shares of Shah Metacorp Ltd hit a 10 per cent upper circuit to Rs 6.73 per share from its previous closing of Rs 6.12 per share. The stock also made a fresh 52-week high is Rs 6.73 and its 52-week low is Rs 2.51. The shares of the company saw a spurt in volume by more than 2.6 times on BSE.
Shah Metacorp Ltd., established in 1999, is a manufacturer, exporter, and supplier specializing in stainless steel and mild steel long products. Their stainless-steel offerings include equal angle bars, bright bars, flat bars, flats, ingots, and angles, primarily used in architectural applications, bridges, automotive components, and more. Additionally, they produce mild steel angle bars crucial for transmission line towers, construction, telecom towers, windmills, railways, and other infrastructure projects.
According to Quarterly Results, the net sales increased by 185 per cent to Rs 46.29 crore and net profit increased by 1,762.5 per cent to Rs 23.34 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 143 per cent to Rs 96.77 crore and net profit increased by 158 per cent to Rs 4.26 crore in FY24 compared to FY23.
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The Company has allotted 7,54,75,727 equity shares of Re. 1/- each to non-promoters at Rs. 4.02 per share. Out of this, 61,32,1473 shares were allotted for cash, while 14,15,4254 shares were allotted to Sellwin Traders Limited against the conversion of a loan. Additionally, 4,45,00,000 convertible warrants were allotted to promoter Ms Mona Viral Shah at Rs. 4.02 per warrant, with 2,98,50,746 warrants issued against an outstanding unsecured loan and the remaining 1,46,49,254 for cash consideration. Notably, the company has achieved a debt-free status by fully settling all financial obligations to banks and financial institutions.
The company has a market cap of over Rs 280 crore and has delivered good profit growth of 29 per cent CAGR over the last 5 years. The shares of the company have an ROE of 61 per cent and an ROCE of 26 per cent. The stock gave multibagger returns of over 160 per cent from its 52-week low of Rs 2.51 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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