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In Friday’s session, Microcap stock rose 5 percent and hit its upper price band of Rs 165.35 from the previous close of Rs 157.50 after the company announced the disposal of equity shares worth 3.86 percent of the company. 

According to Garg Furnace Limited filling, the company disclosed the disposal of 1,54,869 equity shares which is 3.86 percent of the company. The equity shares are acquired by Securocrop Securities India Private Limited. 

Additionally, after this acquisition, the cumulative share of Securocrop Securities India Private Limited will be 8.54 percent which is 3,42,681 equity shares. 

According to the Garg Furnace Limited report, the net revenue decreased by 1.4 percent year over year, from Rs 60.73 crore in Q2FY23 to Rs 59.86 crore in Q2FY24. Their revenue fell by 3 percent sequentially from Rs 61.75 crore in Q1FY24 to the current levels. 

In addition, the company’s net profit fell by 56 percent year over year, from Rs 1.18 crores in Q2FY23 to Rs 0.513 crores in Q2FY24. Their profit increased by 0.4 percent on a quarterly basis from Rs 0.511 crore in Q1FY24 to the current levels. 

Garg Furnace Limited is a microcap company with a market capitalization of Rs 66.28 crores. The company’s promoters hold a 64 percent stake in the company and 36 percent owned by the general public. 

Garg Furnace Limited’s share price has risen by 130 percent year to date and by 135 percent year to date for example if an investor invests Rs 1 Lakh year to date the current value would be 2.35 Lakhs. 

The company has a low deb-to-equity ratio of 0.22, a return on equity (ROE) of 33 percent and a Return on capital employed of 24 percent. 

Garg Furnace Ltd, founded in 1973, manufactures and trades iron and steel products. Non-Alloy Steel Round, Scrap/End Cutting, Unmatched Casting, Billets, M.S. Round, Ingot, Wire Rod, and other products are available. 

Written by Sriram KV

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