Turnaround Story: Microcap Company Secures Order Worth Rs 20.48 Crore, Around 25 per cent of Its Total Market Cap – Stock Hits Upper Circuit Today
The company’s shares have delivered a multibagger return of over 270 per cent to its shareholders in just 2 years.
This micro-cap company has bagged orders from the following entities such as PSK Denims, Sevens Food Lab, Khushi Garments, and Sameep Fabrics.
All awarded contracts are to domestic entities and involve job work related to denim. The contracts are to be executed within 3 months from the date of execution, with a total consideration of approximately Rs 20.48 crore. Additionally, none of the promoters, promoter groups, or group companies have any interest in the entities awarded the contracts, and these contracts do not fall under the category of related party transactions.
Looking at the share performance, at the start of the day's trading session, shares of Yarn Syndicate Ltd opened at Rs 38.71 per share, compared to the previous day's closing figure of Rs 37.96 per share on the BSE. Currently, the shares are at Rs 38.71 per share. The stock has rallied 2 per cent today and hit the upper circuit, reflecting strong demand in the market.
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The company's current market capitalization stands at Rs 84.19 crore. Additionally, the company’s shares have delivered an impressive return of around 270 per cent in just 2 years and a 670 per cent return in the past 3 years.
As per the Quarterly Results, in the Q1 FY25, Yarn Syndicate Ltd recorded a revenue of Rs 0.94 crore. The operating loss reported by the company was Rs 0.13 crore. The net loss stood at Rs 0.70 crore compared to a loss of Rs 0.06 crore. Looking at the annual performance, the company generated a revenue of Rs 3.90 crore in FY24. The operating profit for FY24 was Rs 0.78 crore with a net profit of Rs 1.40 crore compared to a net loss of Rs 0.16 crore in FY23 representing a growth of 971 per cent on a YoY basis.
According to the company's shareholding pattern, the promoters hold around 6.73 per cent stake. Public investors own 93.17 per cent of the shares, while Domestic Institutional Investors (DIIs) hold 0.10 per cent.
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Investors must keep this penny stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.