Penny Stock Below Rs 2 Jumps 4.9 Per Cent After Announcing 5:2 Rights Issue and PAT Surges Over 100 Per Cent in FY25

The stock is down by 22.5 per cent from its 52-week high of Rs 1.65 per share while it is up by 70 per cent from its 52-week low of Rs 0.63 per share.

On Tuesday, shares of Sattva Sukun Lifecare Ltd gained 4.90 per cent to Rs 1.07 per share from its previous closing of Rs 1.02 per share.

Sattva Sukun Lifecare Ltd (Formally known as Mayukh Dealtrade Ltd), established in 1980, manufactures and sells burners. The company's product line includes camphor sticks and various aroma burners, such as Mantra Aroma Burner, Brilliance with Timer, and Navkar Mantra Aroma Burner. In July 2021, they launched the Brilliance with a Timer aroma burner and expanded their business by acquiring a 60 per cent stake in Mayukh Medi Care Private Limited, a subsidiary focused on medical and general stores.

Sattva Sukun Lifecare Ltd is set to launch a Rights Issue of 48,00,00,000 fully paid-up equity shares, each with a face value and issue price of Re. 1.00, aiming to raise a total of Rs. 48,00,00,000. The Record Date for determining eligible shareholders is Friday, May 9, 2025. Shareholders will be entitled to 5 (Five) equity shares for every 2 (Two) equity shares held, with the option to renounce their entitlements. The Rights Issue will open on Wednesday, May 28, 2025, and is expected to close on Thursday, June 26, 2025, with the last date for on-market renunciation being Friday, June 20, 2025. Upon full subscription, the outstanding equity shares will increase from 19,20,00,000 to 67,20,00,000.

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

Earlier, the company announced the receipt of a significant purchase order from Mangalam Brands Pvt Ltd, for 10,000 units of their specialised Electric Kapoor Dani (Wooden) Sheesham Wood with Carving design. This single order specifies a temperature heating timing of 240 degrees in 5 minutes, with a stable temperature of 240 degrees, and a red LED indicator. This order represents a substantial quantity, highlighting the demand for Sattva Sukun Lifecare's unique product.

Furthermore, shares of the company were traded at a bonus issue of 3 new equity shares for every 5 existing shares, to be issued by capitalising its Securities Premium Account (Ratio 3:5). This move will increase the company's equity share capital from Rs 12 crore to Rs 19.2 crore. The ex-date for bonus shares was Friday, January 17, 2025.

The stock is down by 22.5 per cent from its 52-week high of Rs 1.65 per share while it is up by 70 per cent from its 52-week low of Rs 0.63 per share. The company has a market cap of Rs 70 crore with a PE of 30x whereas the industry PE is 30x.

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