PE at 1.5x: 10,000 per cent Revenue Growth and 980 per cent Profit Increase – Is a Zomato-like Rally Possible for This Penny Stock?

The stock’s market cap is about Rs 91 crore, and it trades at a PE of 1.53x with an ROCE of 78.4 per cent.

Indian markets are currently in the midst of the earnings season for the quarter ended June 2024. A large number of companies have already announced their earnings, and in this article, we highlight a company that is not very popular but has reported earnings that investors should take note of.

The company in focus is 21st Century Management Services Limited (TCMSL), a penny stock that hit an upper circuit and a fresh 52-week high of Rs 86.30 on the NSE last Friday. TCMSL, established in 1986, is involved in investments in Capital and Debt Instruments. The company manages surplus funds by investing in the Capital Market, acts as financial intermediaries, aids corporates in resource mobilization and deployment, and operates as a trading member of the National Stock Exchange of India Limited (NSEIL) through its subsidiary, Twentyfirst Century Shares and Securities Limited.

The stock’s market cap is about Rs 91 crore, and it trades at a PE of 1.53x with an ROCE of 78.4 per cent. In its Quarterly Results, TCMSL reported a staggering growth of over 10,000 per cent YoY to Rs 108.6 crore in Q1FY25 compared to Q1FY24. Net profit jumped by 980 per cent YoY to Rs 24.4 crore in Q1FY25. The share price of TCMSL has surged from Rs 20.75 a year ago to Rs 86.30, translating to a multibagger return of about 316 per cent in the last year.

Now, the question remains: after reporting such robust financial performance, will the stock replicate the significant price movements seen in companies like Zomato, where stock prices surged following strong financial results?

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