Shares of this penny stock jumped approximately 4 percent in Tuesday’s trading session after signing a Memorandum of Understanding (MoU) for manufacturing several Medical Compounds. In the last six months, the company’s stock gained nearly 30 percent for its holders.
With a market capitalization of Rs 44.12 crores, the stocks of TCM Limited, manufacturing chemicals and trading solar equipment, opened their trading hour on Tuesday at Rs 59.98 and currently trades at Rs 59.
The company’s scrip witnessed an intra-day high price, the same as the opening price, representing a gain of around 4 percent compared to the previous close of Rs 57.73 apiece.
Such bullish share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about signing a Memorandum of Understanding (MoU) with “M/s Biogenix Inc. Private Limited”, Lucknow.
The MoU mentioned above pertains to the contract manufacture of several “Reagents” used in diagnostic laboratories for various tests on behalf of TCM Limited. A reagent is referred to as a substance/mixture used in chemical analysis or other reactions.
As per the agreement, Biogenix will supply the products as per the requirements of TCM Limited against an advance payment.
Biogenix Inc. Private Limited has statutory license expertise in manufacturing various reagents, and it has convinced TCM Limited about its facilities, suitable ambience for production, skilled employees, and other packing facilities.
During the recent financial quarters, the company’s prime business indicators, viz, its operating revenues as well as after-tax profits, reported positive movements with the former increasing from Rs 5.04 crores during Q2FY24 to Rs 11.30 crores during Q3FY24 and the latter, keeping the timeframe the same, transitioning from losses of Rs 1.74 crores to profits of Rs 69 lakhs.
Having a glance at the financial ratios, the company’s debt-to-equity ratio, one of the well-known leverage metrics tracked by analysts, has reduced with the recent movement from 0.21 times during FY22 to 0.05 times during FY23.
Incorporated in 1943, TCM Limited is engaged in manufacturing and selling chemicals including carbonates, nitrates, and chlorides. In addition, the company also engages in trading and installation of solar panels, manufacturing cattle feed, etc.
Written by Amit Madnani
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