Penny stock under Rs 25 hit 20 per cent upper circuit with heavy volumes as the company reports a 302 per cent jump in PAT

The stock is up by 90 per cent from its 52-week low of Rs 12.16 per share.

Palm Jewels Ltd, established in 2005, operates as a wholesale gold jewellery trader. The company specializes in gold chains, bracelets, and necklaces, which are manufactured by external job workers based in Ahmedabad and Mumbai. Palm Jewels procure its primary raw materials, gold and silver, predominantly through the bullion market, with supplementary sourcing from local Ahmedabad markets. While the company provides gold bars and essential materials to the job workers, there are no formal agreements in place. The finished jewellery is exclusively marketed and sold within Gujarat through a B2B or direct outbound marketing approach to other jewellery stores.

On Tuesday, shares of Palm Jewels Ltd were locked in a 20 per cent upper circuit to Rs 23.10 per share from its previous closing of Rs 19.25. The stock’s 52-week high is Rs 24.70 and its 52-week low is Rs 12.16. The shares of the company saw a spurt in volume by more than 34 times on BSE.

The sudden rise in the stock price was due to the company announcing its Quarterly Results (Q1FY25). The net sales decreased by 92.24 per cent to Rs 2.31 crore and net profit increased by 302 per cent to Rs 0.56 crore in Q1FY25 compared to Q1FY24. In its annual results, the company reported net sales of Rs 99.69 crore and net profit of Rs 0.31 crore in FY24.

The company has a market cap of Rs 23.19 crore. The stock is up by 90 per cent from its 52-week low of Rs 12.16 per share. Investors should keep this penny stock under the radar.

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

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