Multibagger penny stock under Rs 35 & FIIs increase stake: Heavy buying in this auto stock as NCLT approves demerger; hit 52-week high!

The stock gave multibagger returns of over 150 per cent from its 52-week low of Rs 13.1 per share.

On Tuesday, the Sensex climbed 431 points, or 0.63 per cent to close at 69,296, while the Nifty surged 168 points, or 0.81%, to settle at 20,855. This marks a remarkable day for Indian equities, with both indices breaching their previous 52-week highs.

Amidst the broader market rally, Pritika Auto Industries Ltd, a multibagger penny stock, witnessed a notable surge. The stock price jumped 10.9 per cent to touch an intraday high & 52-week high of Rs 32.80 per share, up from its previous closing price of Rs 29.58.

The sudden rise in the stock price was due to the Chandigarh Bench of the Hon'ble National Company Law Tribunal (NCLT) approving the Scheme of Arrangement between Pritika Industries Limited (PIL) (Demerged Company) and Pritika Auto Industries Limited (PAIL) (the Resulting Company) and their respective shareholders. This means that the demerger of the Automotive/Tractor/Engineering Components Business Undertaking of Pritika Industries Limited into Pritika Auto Industries Limited has been approved.

As a result of the demerger, every shareholder of Pritika Industries Limited who holds fully paid-up equity shares in the company will receive 63 new equity shares of Pritika Auto Industries Limited for every 10 equity shares of Pritika Industries Limited that they hold. Pritika Auto Industries Limited will be applying for listing of its shares on the stock exchanges in due course of time.

Pritika Auto Industries, a leading manufacturer of machined castings in India, has secured a significant investment from Zenith Multi Trading DMCC, a Foreign Institutional Investor (FII). This investment, amounting to a 2.73 per cent stake in the company, will fuel Pritika Auto Industries' continued growth and expansion.

The company's financial performance remains strong, with net sales reaching Rs 93.7 crore and net profit reaching Rs 4.75 crore in Q2FY24. This marks a 24 per cent increase in net sales and a 15 per cent increase in net profit compared to the previous year.

Pritika Auto Industries' commitment to growth and innovation is further demonstrated by the successful commencement of commercial production at its new state-of-the-art plant in Punjab. This expansion, with a capacity of 24,000 tons, strengthens the company's market position and lays the foundation for future growth.

The stock gave multibagger returns of over 150 per cent from its 52-week low of Rs 13.1 per share. Investors should keep an eye on this micro-cap stock.

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