Shares of this micro-cap stock hit the 5 percent upper circuit on Thursday after the company’s subsidiary entered into an agreement to establish and operate cinemas in Saudi Arabia. In the past month, the company’s shares have gained nearly 15 percent.
With a market capitalization of Rs 186.73 crores, the stocks of Mukta Arts Limited started their trading session on Thursday at Rs 82.68 and, after hovering around the same levels, it again got locked at the same price levels hitting its 5 percent upper circuit. The shares are inching to its 52-week high of Rs 90.39.
Such sharp movements in the stock price were observed after the company, through a regulatory filing with the exchange, intimated that its subsidiary has signed a contract for the establishment and operations of cinemas.
It mentioned that ‘Mukta A2 Multiplex W.L.L.’, a subsidiary company of Mukta Arts based in Bahrain, entered into an agreement with “Al-Othaim Investment Company”, a Saudi Arabia-based company, to establish and operate cinemas in the country.
During the recent financial quarters, the company reported an increase in its revenue from operations from Rs 40.42 crores during Q1FY23-24 to Rs 61.1 crores during Q2FY23-24. Moreover, the after-tax profits of the company, during the same period, transitioned from a loss of Rs 3.82 crores to a profit of Rs 4.14 crores.
The latest shareholding pattern data of the company portrays the Promoters holding a 70.71 percent stake followed by the Public (retail) investors holding the remaining 29.29 percent stake in the company.
Mukta Arts Limited is an India-based company that is primarily engaged in the business of film production, distribution, and exhibition. Catering mainly to the domestic market, the company operates in various business segments including Equipment, Software, Theatrical Exhibition, and others.
Written by Amit Madnani
