Gujarat-Based Penny Stock Below Rs 15 Hit Upper Circuit After Reporting a Turnaround Net Profit in FY25; Script Trades at Low PE
The is trading at 0.84 times its book value and its up by 95 per cent from its 52-week low of Rs 7.16 per share.
On Wednesday, shares of Vaxfab Enterprises Ltd hit a 5 per cent upper circuit to Rs 13.96 per share from its previous closing of Rs 13.30 per share. The stock’s 52-week high is Rs 14.80 per share and its 52-week low is Rs 7.16 per share. The stock is trading above the 50-DMA of Rs 12.83 and the 200-DMA of 11.68.
Incorporated in 1983, Gujarat-based Vaxfab Enterprises Ltd is primarily engaged in the trading of agricultural commodities. The company plans to diversify its operations to include the trading of textile products and clothing, housing both agricultural and textile verticals under a single corporate entity. This strategic move aims to expand its business scope beyond its traditional focus on agricultural products.
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According to Quarterly Results, the net sales increased by 168 per cent to Rs 3.19 crore, operating profit increased by 909 per cent to Rs 1.86 crore and net profit increased by 189 per cent to Rs 1.79 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 542 per cent to Rs 58.67 crore in FY25 compared to net sales of Rs 9.14 crore in FY24. The company reported a turnaround net profit of Rs 0.58 crore in FY25 compared to a net loss of Rs 3.53 crore in FY24; an increase of 116 crore.
The company has a market cap of Rs 11.73 crore with 100 per cent ownership by public shareholders. The shares of the company have a PE of just 20x whereas the industry PE is 48x. The is trading at 0.84 times its book value and its up by 95 per cent from its 52-week low of Rs 7.16 per share.
Disclaimer: The article is for informational purposes only and not investment advice.