Promoter bought 8,00,000 shares of this multibagger penny stock; Rs 300,00,00,000 capex plan for business expansion – do you hold it?

Kiran Shroff
Promoter bought 8,00,000 shares of this multibagger penny stock; Rs 300,00,00,000 capex plan for business expansion – do you hold it?

The stock gave multibagger returns of 177 per cent to Rs 30.35 per cent.

Today, the stock market started the day in green with the BSE Sensex Index up by 0.14 per cent and the NSE Nifty-50 Index up by 0.15 per cent. Along with the green market, Snowman Logistics Ltd shares gained 2.08 per cent to Rs 83.79 per share. The stock’s 52-week high is Rs 84.85 and its 52-week low is Rs 30.25.

Shift in Focus: Acquired by Gateway Distriparks Ltd in 2016, shifted from low-margin food business to temperature-controlled warehousing and owning vehicles, leading to improved margins.

A logistics company with a dominant warehousing presence (44.5 per cent) operates in key industries like dairy (37 per cent) and QSR (22 per cent). They possess 45 temperature-controlled warehouses, 600+ vehicles and boast a 91 per cent utilization rate in the first half of the year. Their diverse client base spans pharmaceuticals, food, and consumer goods across trading & distribution (30 per cent) and transportation (25.5 per cent) services.

Snowman Logistics, a leader in India's cold chain sector, is expanding its infrastructure and diversifying its business for growth. They are building a 9,000-pallet warehouse in Kolkata, investing Rs 300,00,00,000 in new terminals, completing a Jaipur warehouse, and replacing vehicles and equipment. Additionally, they are entering the trailer business for city distribution with a focus on an asset-light model.

DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.

Snowman Logistics is engaged in the business of temperature-controlled logistics including, but not limited to storage, transportation by road, and distribution of products requiring a temperature-controlled environment.

In February 2024, the promoter of the company Gateway Distriparks Ltd bought an additional 8,00,000 shares via the open market. The company has a market cap of Rs 1,380 crore and has delivered good profit growth of 29.4 per cent CAGR over the last 5 years. Additionally, the company reported positive numbers in its Quarterly Results (Q3FY24) and nine-month results (9MFY24). The stock gave multibagger returns of 177 per cent to Rs 30.35 per cent.

Do you hold Snowman Logistics Ltd.’s stock in your portfolio? Do let us know in the comments below

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

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2 comments on article "Promoter bought 8,00,000 shares of this multibagger penny stock; Rs 300,00,00,000 capex plan for business expansion – do you hold it?"

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Monish

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Balkrishna

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