Shares of this multibagger metal stock rose 11 percent after it bagged orders worth more than 700 crores across various business verticals. In the last one month, the stocks of the company rose around 10.60 percent from Rs 84.95 to the current price level.
With a market capitalization of Rs 1,300 crores, the stocks of Pennar Industries Limited started their trading session on Wednesday at Rs 90.95 and currently trade at Rs 94.20. The scrip witnessed an intra-day high, also recorded as the company’s fresh 52-week high mark, of Rs 96.35 apiece indicating a gain of around 11 percent as compared to the previous close of Rs 86.65.
Such sharp movements in the company’s share prices were observed after it published a filing with the BSE announcing receipt of orders across various business verticals including steel, tubes, railway, and many more. The total value of the orders aggregates to an amount of Rs 702 crores, and, the same is expected to be executed within the next two quarters.
Keeping a purview of one year, the company’s stock has proven to deliver multibagger returns of approximately 141 percent. The same means that if someone would have invested Rs 1 Lakh in the company’s stock, it would have converted to Rs 2.41 Lakhs within a period of one year.
Having a look at the financials reported, the company, comparing Q1FY22-23 and Q1FY23-24, has increased its operating revenues as well as net profits with the former moving up from Rs 699 crores to Rs 748 crores, and, the latter taking a shift from Rs 14 crores to Rs 21 crores.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 39.74 percent stake, and the Foreign Institutional Investors (FIIs) hold a 4.25 percent stake in the company. Since the past two quarters, the company’s pledged shares, as a part of the promoter’s shares, have reduced to ‘zero’.
Pennar Industries Limited is engaged in the business of providing engineering products and services. The product portfolio of the company comprises Cold Rolled Steel Strips, Railway wagons/Coaches, Precision Tubes, and many more. It serves a wide range of sectors including Automobile, Refineries, among others.
Written by Amit Madnani
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