RO Jewels Limited started its trading session today at Rs 32.60 and since then it was locked in the 5% upper circuit. In a span of just 5 days, the stock has been able to deliver returns to its stakeholders at around 21.5 percent ranging from Rs 26.84 to the current price levels. Having a purview of 1 year, the stock has been successful in providing Multibagger returns of around 621 percent to its stakeholders
RO Jewels Limited was incorporated as a private limited company with the name ‘RO Jewels Private Limited’ on December 11th 2018.
The Company is engaged in the wholesale business of gold and silver chains. It essentially sells gold based chains bracelets gold/silver bars and necklaces. The Company’s jewellery is widely sold throughout Gujarat only through B2B marketing and/ or Direct/Outbound marketing strategy.
It has a diversified portfolio for chains and jewelleries that cater to customers taste preference choice and the ever changing trends in the chain and jewellery designs.
Having a quick walkthrough of financials of the company, we can observe that the revenues have increased on a YoY basis shifting from Rs 43.7 crores in FY20-21 to Rs 49.8 crores in FY21-22. Apart from the same, the net profits of the company has also seen a positive trend shifting from Rs 0.08 crores in FY20-21 to Rs 0.18 crores in FY21-22.
The profitability ratios of the company too have improved on a YoY basis. The returns to the equityholders have improved from 0.8 percent in FY20-21 to 1.75 percent in FY21-22. Another parameter being the returns on the capital been employed have also moved up from 0.76 percent in FY20-21 to 2.06 percent in FY21-22.
Something to the company’s concern is its debt to equity ratio which is increasing from 0.06 in FY20-21 to 0.07 in FY21-22.
Earlier in December last year, the company had announced to split its stock in the ratio of 5:1 and recently in an exchange filing the company communicated the record date for the same to be 18th March, 2023.
The Market Capitalization of the stock is 32 crores and the same along with the stock price range makes it a penny stock.
Written by Amit Madnani
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