Shares of Crayons Advertising Ltd opened 10% higher and got locked in an upper circuit at ₹ 171.80 apiece on the National Stock Exchange (NSE) after it reported robust results for the quarter and year ended on March 31, 2023.
Crayons Advertising was incorporated in 1986 and got listed on the NSE earlier this month. It is one of the few fully integrated and independent agencies in providing marketing and communications solutions to a wide array of clients.
According to a report by Business Today, BOFA Securities Europe SA bought 2,14,000 shares of the firm in a bulk deal. The transaction took place at ₹ 155.18 per share and was worth ₹ 3.32 crores.
For the January to March quarter of 2023 (Q4FY23), the company reported a net profit of 10.04 crores, which is 886% higher than ₹ 1.02 crores reported in the corresponding quarter of the previous year (Q4FY22). Its revenue from operations climbed 17% to ₹ 159.10 crores in Q4FY23 against ₹ 136.09 crores reported in Q4FY22.
For the entire year, its net profit grew by a whopping 928% to ₹ 16.59 crores in FY23, as compared to ₹ 1.61 crores in FY22. Its revenue came in at ₹ 281.15 crores in FY23, indicating an increase of 44.89% as compared to ₹ 194.05 crores in FY22.
The company’s SME IPO was subscribed 147.54 times on May 25. The public issue was subscribed 169.94 times in the retail category, 45.20 times in the QIB category, and 231.59 times in the NII category. The price band for the issue was ₹ 62 to ₹ 65 per share and its shares were available in a lot size of 2000. Therefore, investors have already made multibagger returns, if they bought its shares during the IPO.
Crayon Advertising is a micro-cap stock with a market capitalization of ₹ 382 crores. It has a low return on equity of 4.43% and an ideal debt-to-equity ratio of 0.17.
Written By Simran Bafna
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