Multibagger penny stock under Rs 5 to keep under radar as company proposed to launch a new division dedicated to financing for Electric Vehicle (EV)

Kiran Shroff
Multibagger penny stock under Rs 5 to keep under radar as company proposed to launch a new division dedicated to financing for Electric Vehicle (EV)

The stock gave multibagger returns of 124 per cent from its 52-week low of Rs 2 per share.

Mega Corporation Limited, a registered Non-Banking Financial Company (NBFC) listed on BSE, is pleased to announce its plans to launch a new division dedicated to financing Electric Vehicles (EVs), including EV batteries, rickshaws, and other related ventures and projects. This initiative, branded as "Lendingo," aims to support the burgeoning EV sector and contribute to sustainable solutions.

The establishment of "Lendingo" aligns with our strategic objectives to expand our financial services portfolio and foster internal growth within the company. By providing accessible financing options for EVs, we aim to promote the adoption of electric mobility as part of our green funding initiatives. This effort supports environmental sustainability while also enhancing our engagement with the Micro, Small, and Medium Enterprises (MSME) sector by extending credit to registered MSMEs.

DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.

Mega Corporation Ltd, established in 1985, operates as a Non-Systematically Important Non-Deposit Taking Non-Banking Financial Company (NBFC-CIC). It offers financing solutions in both urban and rural regions. Despite consistently reporting profits, the company has not paid out dividends to its shareholders. Additionally, Mega Corporation Ltd exhibits a low interest coverage ratio and has witnessed a lacklustre sales growth of 11.6 per cent over the past five years. Furthermore, its return on equity stands at a low of 0.91 per cent over the last three years.

The company has a market cap of Rs 42.30 crore. The stock gave multibagger returns of 124 per cent from its 52-week low of Rs 2 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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