Multibagger penny stock under Rs 10: This micro-cap company reports a 280 per cent jump in net profit after stock split!
The stock is up by 75 per cent in 1 year and over 250 per cent in 2 years.
On Monday, shares of RO Jewels Ltd zoomed 5 per cent upper circuit to Rs 5.81 per share from its previous closing of Rs 5.54. At the closing bell, shares of the company were trading at Rs 5.70 per share, up 2.89 per cent with a spurt in volume by more than 2 times on BSE.
The company announced its stellar Quarterly Results ended June 30, 2023, which cause the stock to hit the upper circuit. Details below:
Consolidated Financial Highlights for the Q1FY24:
- Net sales stood at Rs 272.84 crore, up 1,547.58 per cent compared to Q1FY23.
- Operating stood at Rs 1.54 crore, up 413 per cent compared to Q1FY23.
- Profit before tax stood at Rs 1.35 crore, up 382.14 per cent compared to Q1FY23.
- Profit After Tax of Rs 1.10 crore, up 280 per cent compared to Q1FY23.
- The EPS for Q1FY24 is Rs 0.22.
According to the annual results, net sales increased by 918 per cent to Rs 506.62 crore and net profit skyrocketed by 1,047 per cent to Rs 2.01 crore in FY23 compared to FY22. The company has a market cap of Rs 28.75 crore with a 3-year stock price CAGR of 41 per cent.
RO Jewels Ltd. (BSE: 543171) is primarily focused on offering a range of gold-based chains, bracelets, gold/silver bars, and necklaces. The company have a market cap of Rs 35.26 crore. The stock has a PE of 14.3x whereas the sectoral PE is 36.3x with a ROE of 20 per cent and a ROCE of 21 per cent.
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Earlier, FIIs had bought significant stakes through bulk deals and are increasing continuously. According to details available, Vikasa India EIF I Fund-Incube Global Opportunities picked 2,80,000 shares at Rs 7 apiece aggregating to Rs 19.60 lakh. Additionally, the company's share capital was split from 10 shares with a face value of Rs 10 each to 5 shares with a face value of Rs 2 each. The stock split took effect on March 17, 2023.
The stock is up by 75 per cent in 1 year and over 250 per cent in 2 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.