Penny Stock Below Rs 2 In Green As It Expands Horizons with New Firozabad Glassware Facility
The stock is down by 18.1 per cent from its 52-week high of Rs 1.38 per share while it is up by 79.4 per cent from its 52-week low of Rs 0.63 per share.
On Tuesday, shares of Sattva Sukun Lifecare Ltd gained 1.80 per cent to Rs 1.13 per share from its previous closing of Rs 1.11 per share.
Sattva Sukun Lifecare Limited, formerly Mayukh Dealtrade Ltd, is expanding its manufacturing capabilities with the approval for a new facility in Firozabad, Uttar Pradesh. This strategic move aims to significantly boost the company's production capacity and solidify its presence in the lifestyle and décor market, both within India and globally. The Firozabad unit will specialise in producing high-quality glassware products, including table lamps, decorative hanging lamps, flower pots, aroma burners, and chandeliers, leveraging the region's established glassmaking expertise, access to skilled artisans, readily available raw materials, and cost-efficient production infrastructure. This expansion is expected to enhance operational margins and allow the company to introduce new product categories.
The new Firozabad facility will strategically utilise Geographical Indication (GI)-certified practices to preserve the rich heritage of its products. This certification not only provides legal protection and strengthens brand differentiation but also enables premium market positioning and fosters consumer trust, particularly in international markets. By integrating these practices, Sattva Sukun Lifecare aims to boost export potential while simultaneously contributing to local employment, promoting traditional craftsmanship, and improving supply chain traceability, aligning perfectly with the company's mission.
To support this ambitious expansion and reinforce its financial foundation, Sattva Sukun Lifecare has announced a Rights Issue aiming to raise up to Rs 48 crore. This will involve issuing 48 crore equity shares at a price of Re 1 per share. This capital-raising initiative is a crucial component of the company's long-term strategic roadmap, designed to strengthen its financial base, support future growth initiatives, and enhance overall operational capabilities, thereby underscoring the company’s commitment to sustainable expansion and long-term value creation for its shareholders.
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About the Company
Sattva Sukun Lifecare Limited is a leading manufacturer of premium aroma and home decor products, including Aroma Diffusers, Dhoop Burners, Essential Oils, Camphor Products, and Decorative Lamps. They serve both corporate and retail clients, emphasising quality and innovation. Their products are widely available online through platforms like JioMart, Amazon, Flipkart, Meesho, Snapdeal, and IndiaMART, reflecting their commitment to customer satisfaction and growth.
According to Quarterly Results, the net sales increased by 6 per cent to Rs 1.05 crore and net profit increased by 75 per cent to Rs 0.84 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 48 per cent to Rs 5.26 crore and net profit increased by 109 per cent to Rs 2.49 crore in FY25 compared to FY24.
The stock is down by 18.1 per cent from its 52-week high of Rs 1.38 per share while it is up by 79.4 per cent from its 52-week low of Rs 0.63 per share. The company has a market cap of Rs 76 crore with a PE of 30x whereas the industry PE is 22x.
Disclaimer: The article is for informational purposes only and not investment advice.