This Penny stock rose 5% to hit its upper circuit on Wednesday within the first half hour of markets opening after announcing that it has received orders for export worth Rs. 20 crore.
The company has a market cap of Rs. 87 crore and is 22% away from its 52 week high, locked in at Rs. 8.71 versus Rs. 8.30 at closing on Tuesday. The stock saw volumes that are 20x the monthly average, trading 10% above both its 20 day and 200 day moving averages.
In a filing dated 3rd october 2023, Kanani Industries Ltd (“Kanani”) stated that it has successfully secured Export Orders, valued at Appx Rs. 200 million, from its international clients. These orders pertain to the manufacturing of Jewelry. It is noteworthy that these orders will be fulfilled using the company’s in-house, backward-integrated manufacturing facility, which will enhance the company’s profit margins. The Company targets to deliver the aforesaid order within a swift timeframe of 6 months.
Kanani Industries is a reputable manufacturer-exporter in the jewelry and gems sector with a history spanning more than a decade. The business actively engages in diamond production and marketing in addition to its core businesses.jewelry with stones to a global clientele. In FY23, the company’s revenue de-grew 6% YoY, from Rs. 85 crore to Rs. 80 crore. Net Profits saw a degrowth of 46% YoY from Rs. 0.9 crore to Rs. 0.5 crore. Net margins during the period contracted 4 bps
Disclaimer: Since penny stocks are generally illiquid, even a small increase in volume of buy orders can lead to the stock hitting its upper circuit. Even though the stock prices come under an average buying range for retail investors and provide huge upsides, penny stocks are prone to huge risks to retail investors. As such, you should consult your financial advisor before taking an entry into such stocks.
Written by Sandeep R
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