Shares of a penny stock in LIC’s portfolio hit the upper circuit after the company reported robust results for the June quarter of the current financial year (Q1FY24).
According to an exchange filing, Integra Essentia reported nearly a 103 percent increase in its consolidated net profit at ₹ 11.83 crores in the June quarter (Q1FY24), as compared to ₹ 5.83 crores in the corresponding quarter last year (Q1FY23). Its revenue came in at ₹ 54.99 crores in Q1FY24, as against ₹ 55.96 crores in Q1FY23. Moreover, this indicates margin expansion.
Moreover, the company’s board announced a few strategic changes in the key management team with the induction of qualified professionals, redesignating them in strategic positions, for conducting business operations with greater proficiency via constructively strategizing, directing, and conducting the business after the meeting.
Integra Essentia Ltd is in the business of life essentials viz., food (agro products), clothing (textiles and garments), infrastructure (materials and services for construction and infrastructure development) and energy (materials, products and services for renewable energy equipment and projects).
The company’s share price increased by 263.64 percent since its listing in March 2022, indicating that if an investor had invested ₹ 1 lakh in the company’s shares at that point, the value of their holdings would have been ₹ 3.63 lakh today!
The insurance behemoth holds 48,59,916 shares or a 1.06 percent stake in the company as per the latest shareholding pattern.
With a market capitalization of ₹ 263 crores and a share price of ₹ 6, Integra Essentia is a penny stock. It has a high return on equity of 28.80 percent and an ideal debt-to-equity ratio of 0.40. Its shares were trading at a price-to-earnings ratio (P/E) of 30.38.
Retail investors hold a 76.60 percent stake in the company, followed by promoters with 20.81 percent, foreign institutions with 1.51 percent and other domestic institutions with 1.08 percent.
Please note that penny stocks are risky investments and tend to be illiquid. It is important to conduct thorough research or consult your investment advisor before investing in such stocks.
Written by Simran Bafna
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