Penny stock under Rs 15: Company bags new order worth Rs 8,50,00,000 from Korea Agro-Fisheries & Food Corporation, South Korea
The stock gave multibagger returns of over 500 per cent in 5 years.
Axita Cotton Limited has achieved a significant milestone by securing a substantial contract from the Korea Agro-Fisheries & Food Corporation, South Korea, for the supply of sesame seeds, valued at approximately USD 9,71,700. This translates to roughly Rs 8.5 crore, signaling a major expansion into new commodity trading and export activities. The successful bid, awarded through a competitive tender process, underscores Axita's growing presence in the international market and its ability to meet the rigorous standards of foreign government entities. This achievement demonstrates not only the company's operational capabilities but also its strategic focus on diversifying its revenue streams.
This contract win is underpinned by Axita Cotton's robust financial health, as evidenced by its retained earnings of Rs 38.47 crore. The company is strategically deploying these funds to fuel its diversification efforts, ensuring a sustainable and long-term growth trajectory. By venturing into sesame seed exports, Axita is effectively leveraging its financial strength to explore new global trade opportunities. The company's proactive approach to expanding its business portfolio highlights its commitment to capitalizing on emerging market demands and establishing itself as a key player in the international commodity trading arena.
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Looking ahead, Axita Cotton Limited is poised for further growth by actively pursuing additional opportunities in commodity trading and export. With a proven track record of successful bidding and a solid financial foundation, the company is well-equipped to navigate the complexities of international trade. The focus on exploring new global trade avenues reflects Axita's ambition to broaden its market reach and enhance its competitive edge. This contract from the Korea Agro-Fisheries & Food Corporation serves as a testament to Axita's strategic vision and its ability to execute its diversification plans effectively, marking a significant step in its ongoing growth journey.
About the Company
Axita Cotton Limited is engaged in the business of manufacturing, processing and finishing cotton bales and cotton seeds. The company's main business is the ginning and pressing of seed cotton (Kapas) on a work basis and the production of cotton bales and cotton seeds. The company has a market cap of Rs 350 crore. In its annual results, the net sales increased by 101.1 per cent to Rs 1,102 crore and net profit increased by 19.4 per cent to Rs 20.33 crore in FY24 over FY23.
The stock has an ROE of 35 per cent and an ROCE of 38 per cent. The stock gave multibagger returns of over 500 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.