With a market capitalization of ₹ 320 crores, Integra Essentia Limited (IEL) is a penny stock. The company’s share price rallied to ₹ 7.21 apiece on the Bombay Stock Exchange (BSE) and got locked at a 5 percent upper circuit on Friday’s early trades. Simultaneously, they were locked at ₹ 73.5 apiece on the National Stock Exchange (NSE), at a 5 percent upper circuit.
Integra Essentia is engaged in the business of food (agro products), clothing (textiles and garments), infrastructure (materials and services for construction and infrastructure development) and energy (materials, products and services for renewable energy equipment and projects).
The company’s shares gave multibagger returns of 350.62 percent in the past year as its share price increased from ₹ 1.60 to ₹ 7.21 apiece on the BSE. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 4.50 lakhs today!
The Delhi-based company announced that it has purchased assets of Chateau Indage Winery for ₹ 400 million (₹ 40 crores) as a part of its pre-defined long-term business growth strategy and to strengthen its presence in the entire supply chain spectrum of consumable goods.
These assets are situated in Narayangaon, Maharashtra, a strategic location, having an optimum climate for grape cultivation, known for its world-class high-quality grapes. It comprises a winery, land of 58,612 square metres, winery buildings of 16,629 square metres RCC, fully insulated, and winery equipment including 60 lakh litres stainless steel storage, 4 bottling lines, 2 crushers/pressers, online cold stabilization and filtration.
In an exchange filing, the company said that there has been a significant increase in wine consumption led by an increase in disposable incomes, rapid urbanization, access to reasonably priced domestic wines, perceived health benefits of consuming low-alcohol beverages and changing consumer attitudes.
According to industry sources, the Indian wine sector has become the fastest-growing alcoholic beverage category in the past decade, particularly due to the rise of upper-middle-class urban consumers. The consumption of wine has gone up to more than 30 million litres per year.
“Our goal is very clear; we want to significantly expand the company’s business, its market reach, and obviously its profitability,” said Mr. Vishesh Gupta, Managing Director of Integra Essentia.
He said that the company is initiating a process to identify and engage a team of professionals and partners to put these purchased assets in use at the earliest so that they start to contribute significantly to the company’s revenue and profits without much delay.
P.S. Please note that penny stocks are highly risky investments, even though they have the potential to deliver massive returns. Investors must do thorough research, or consult their investment advisors before investing in such stocks. These stocks generally have low liquidity, and relatively small transactions can cause large swings in their share price.
Written by Simran Bafna
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