Penny stock below Rs 20: This micro-cap company enters into MoU with Government of Uttarakhand!
The stock is up by 44.3 per cent from its 52-week low of Rs 10.90 per share and down by per cent from its 52-week high of Rs 48.75 per share.
Today, one of the Top Gainers on BSE, shares of Mega Nirman and Industries Ltd hit 20 per cent upper circuit to Rs 15.73 per share from its previous closing of Rs 13.11 per share. The shares of the company saw a spurt in volume by more than 4.27 times on BSE.
The sudden rise in the stock price was due to the company announcing that it has participated in Uttarakhand Investor Summit 2023 as an investor where the company has entered into a Memorandum of Understanding (MoU) with the Government of Uttarakhand on December 08, 2023, for the purpose of ethanol production.
Recently, the government has banned sugar mills and distilleries from using sugarcane juice for ethanol production in order to ensure adequate sugar supply for the domestic market. This move is expected to increase sugar production by 10-15 per cent but reduce ethanol volumes by 20-25 per cent over the next 18 months. This will have a negative impact on the EBITDA of sugar companies, ranging from 4 per cent to 25 per cent. However, the impact may be less for companies in Maharashtra and Karnataka as they were already facing lower production due to other factors. The government has directed sugar mills to continue supplying ethanol to oil marketing companies from B-heavy molasses.
Mega Nirman & Industries Limited operates as a real estate company. The Company offers develops and sells buildings, farms, outhouses, and other real estate properties. Mega Nirman & Industries serves customers in India. The company has a market cap of over Rs 5 crore.
The stock is trading at 1.10 times its book value. The stock is up by 44.3 per cent from its 52-week low of Rs 10.90 per share and down by per cent from its 52-week high of Rs 48.75 per share.
Disclaimer: The article is for informational purposes only and not investment advice.
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