Global Capital Markets is a non-banking financial company that lends both long-term and short-term loans, as well as invests in stocks and other securities.
With a market capitalization of ₹ 88 crores, it is a penny stock listed on the Bombay Stock Exchange (BSE). The company’s shares have been on an uptrend since February 23, 2023, and are currently locked at ₹ 37.30 apiece, in a 5% upper circuit.
The company has fixed 20th March 2023 as the record date for the subdivision of its shares and for a bonus issue. Its equity shares of the face value of ₹ 10 each will be subdivided into shares of ₹ 1 each. In addition, it has announced a bonus issue in the ratio of 1:1. Therefore, one equity share will be allotted for every share that shareholders hold.
Global Capital Markets reported a net income of ₹ 15.25 crores during the October to December quarter of 2022, as compared to ₹ 0.53 crores during the corresponding quarter last year.
The company’s shares were trading at ₹ 4.70 apiece a year ago and have risen to the current levels, giving multibagger returns of 693.62%. 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 ₹ 7.93 lakhs today!
Penny stocks are highly risky investments as they are volatile and prone to pump-and-dump schemes. Investors should study the fundamentals of these companies and invest in them only if they have an aggressive risk profile.
Written by Simran Bafna
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