The shares of one of the largest paper manufacturers in Northern India gained up to 2.5 percent to Rs 52 per share after the company board approved raising funds through Non-Convertible Debentures (NCDs).
Magnum Ventures Ltd is a penny stock, with a market capitalization of Rs 238 crore. In the last six months, the stock has risen 31 percent.
According to the company’s exchange filing, The Magnum Board has approved the raising of funds by way of issuance of Listed Secured NonConvertible Debentures (NCDs) on a private placement basis, in one or more tranches, for an amount aggregating up to Rs 150 Crore, during one year from the date of approval by the Shareholder.
The company’s revenues have declined by 7 percent year on year from Rs 129 crore in Q2FY23 to Rs 120 crore in Q2FY24, while net profit rose by 38 percent in the same period, from Rs 3.81 crore to Rs 5.27 crore.
Magnum Ventures shares have delivered a multibagger return of 156 percent in a year. A company shareholder investment of Rs 1 lakh would be worth Rs 2.56 lakhs in a year.
The company has an annual paper production capacity of 85K MT and production sites in Sahibabad and Uttar Pradesh.
The hotel segment generates 18.3 percent of the company’s income, while the paper division generates 81.7 percent.
The company is one of the major paper printing enterprises in the Northern area. The company has been engaged in the manufacture of paper from 100% waste paper.
As a consequence of improved search engine presence, the hotel received 60% of its reservations online in FY23, up from 30 percent the previous year.
Greyboard accounts for 28.3 percent of the company’s sales, followed by newsprint (26.5 percent), duplex board 20.4 percent, and N.S. Paper & Board (19 percent).
In FY23, the company earned Rs 9.53 crore from exports on a total revenue of Rs 376.5 crore. In FY23, the company’s top ten clients provided more than 62.5 percent of total revenue.
Magnum engaged in the business of manufacturing paper boards and printing papers. The Company has been manufacturing papers for the last 30+ Years. The company is one of the largest paper printing co in the Northern region.
At the time of writing this report, Magnum Ventures shares were trading at Rs 49.95 per share, down 1.38 percent from the previous close price.
Since Magnum Ventures falls under the umbrella of penny stocks. However, penny stocks exhibit inconsistent performance, are rarely traded, and only a small number of trades might trigger a circuit limit. We suggest individual investors do extensive research before investing and stocks exhibit a high level of risk to individual investors.
Written by Omkar Chitnis
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