Penny stock engaged in providing a wide range of agrochemicals across India and Overseas slumps 3 percent in the day’s trade despite receiving a work order worth Rs. 7.37 Crores from National Fertilizers Limited.
With a market capitalization of Rs. 47.59 Crores, the shares of Aristo Bio-Tech and Lifescience Limited closed at Rs. 69.90, down 3.12 percent from its previous day’s close price of Rs. 72.15
Aristo Bio-Tech and Lifescience Limited have received a Letter of Intent worth Rs. 7.37 Crores from National Fertilizers Limited for the supply of various agrochemicals on a Freight on Road (FOR) basis and it is executed within March 18, 2024 and September 30, 2024.
Aristo Biotech and Lifescience is an agrochemical company, it is engaged in providing, manufacturing, formulation, supply, and packaging work services for various pesticides like insecticides, fungicides, herbicides, plant growth regulators, and a wide variety of other Agrochemicals in India as well as for export.
Its revenue from operations grew by 31.28 percent from Rs. 166 Crores in FY22 to Rs. 218 Crores in FY23, accompanied by profits of Rs. 1 Crore to Rs. 4 Crores.
It has reported a return on equity (ROE) of 15.8 percent and a return on capital employed (ROCE) of 16.1 percent, it is making good returns on its equity and capital employed.
Note: Due to the illiquidity of penny stocks, the stock can hit its assigned circuit levels with just a minor increase in the volume of trades. Even if the stock prices are within the usual buying range for the investors and offer enormous potential profits, penny stocks are quite dangerous for retail investors.
Written by: Bharath K.S
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