The shares of Gautam Gems Ltd surged 4.97% on Thursday’s early trades. They got locked at an upper circuit at 20.50 apiece. In fact, they hit the upper circuit for three days in a row. 5,45,651 shares worth ₹ 1.12 crore changed hands on Thursday.
Gautam Gems is a Surat Based company and is an importer, exporter, and manufacturer of rough and polished diamonds. It is a penny stock with a market capitalization of ₹ 117 crores.
The company informed the Bombay Stock Exchange (BSE) that it intends to add a new segment of business in the renewable energy sector, consisting of windmills and solar energy, considering the present and future prospects of the renewable energy segment. A meeting for this purpose will be held on December 30, 2022.
Gautam Gems has given multibagger returns of 119.72 in the past six months, as its share price increased from ₹ 9.33 apiece to ₹ 20.50. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares six months ago, the value of their holdings would have been ₹ 2.19 lakh today!
The company has a low return on equity of 3.69% and an ideal debt-to-equity ratio of 0.72. Its shares were trading at a price-to-equity ratio (P/E) of 24.62, which is significantly lower than the industry P/E of 65.39, indicating that it is undervalued as compared to its peers. Its promoters hold a 21.41% stake in it, while retail investors hold 78.59%.
On 26 December 2022, micro ace investor Aiyub Mohamed Yacoobali bought 79,695 shares of the penny stock at an average price of ₹17.90 for one share, in a bulk deal. In addition, he bought 111258 shares on December 23, 2022.
Written by Simran Bafna
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