Multibagger penny stock under Rs 25: This micro-cap company receives order worth Rs 1,36,00,000 from Vision Impex Limited; scrip hit upper circuit!

The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex Index is up by 15.36 per cent and a whopping 420 per cent in 3 years.

Veerhealth Care Ltd informed that the company has received an order for the third quarter of the financial year 2023 from Vision Impex Limited, Uganda, East Africa for fresh up red gel toothpaste amounting to Rs 1,36,00,000. The order will be executed within 70 days from the letter of intent (LOI). The company is expecting additional growth in turnover with this new order.

Earlier, the company signed an MoU with Onest Limited for manufacturing and supplying a wide range of products falling into the ayurvedic, cosmetic and disinfectant category. Onest Limited is primarily engaged in the fast-moving consumer goods (FMCG) segment with a range of personal care, home care and food products. Additionally, the company signed a contract to supply the "WHIDENT" range of toothpaste to Casablanca, Morocco (North West Africa) as a part of its expansion plan. The company is expecting additional growth in sales in the current Financial Year with the new contract of supply & additional profit.

Additionally, the company allotted 99,99,238 bonus shares in the ratio of 1:1 i.e., 1 equity share of Rs 10 each for every 1 existing equity share of Rs 10 each to the equity shareholders entitled thereto as of September 22, 2023, being the record date fixed for the purpose.

According to the Quarterly Results, the net sales increased by 26 per cent to Rs 3.58 crore and the net profit skyrocketed 277 per cent to Rs 0.34 crore in Q1FY24 compared to Q1FY23. According to the annual results, the net sales increased by 38 per cent to Rs 13.27 crore and the net profit skyrocketed by 2,357 per cent to Rs 1.58 crore in FY23 compared to FY22.

Veer Healthcare Ltd (formerly Niyati Leasing Ltd) is engaged in the business of trading, manufacturing and marketing research based ayurvedic medicines. The company has a market cap of Rs 42.54 crore with a 3-year CAGR of 75 per cent.

On Tuesday, after the new order announcement shares of Veerhealth Care Ltd hit a 5 per cent upper circuit to Rs 21.45 per share from its previous closing of Rs 20.43. The stock’s 52-week high is Rs 22.72 and its 52-week low is Rs 6.13.

The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex Index is up by 15.36 per cent and a whopping 420 per cent in 3 years. Investors should keep an eye on this micro-cap stock under the radar.

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