Shares of this penny stock hit the 20 percent upper circuit in Friday’s trading session after the company announced robust financial results for Q3FY23-24, viz, for the quarter ended December 2023.
With a market capitalization of Rs 141.89 crores, the stocks of BLB Limited started their trading session on Friday at Rs 24.49 and currently trade at Rs 26.84, hitting the 20 percent upper circuit compared to the previous closing levels of Rs 22.37 apiece.
Such a spike in the share prices were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the quarter ended December 2023.
Sequentially, the company reported an increase in its prime indicators of business such as operating revenues as well as after-tax profits. The former rose from Rs 25.23 crores during Q2FY24 to Rs 44.35 crores during Q3FY24 and the latter, keeping the timeframe the same, shifted up from Rs 1.23 crores to Rs 1.48 crores.
In addition, the yearly movements of the metrics discussed above show a contrasting movement with the operating revenues, on one end, nearly halved from Rs 81.08 crores during Q3FY23 to Rs 44.35 crores during Q3FY24, and the bottom-line numbers, on the other end, rose by a whopping 151 percent from Rs 59 lakhs to Rs 1.48 crores.
Historically, due to declining sales, the company reported reduced margins and profitability ratios. The return on equity (RoE) of the company shifted down from 10.74 percent during FY21-22 to 6.45 percent during FY22-23 and the return on capital employed (RoCE), in congruence with the pattern, fell from 14.09 percent to 8.62 percent.
According to the shareholding data for the quarter ended September 2023, the company’s Promoters hold a 45.35 percent stake, and the Foreign Institutional Investors (FIIs), recently reducing their stake, currently hold a 4.88 percent stake in the company.
Incorporated in 1965, BLB Limited is a company based in India that is engaged in the business of dealing in shares, derivatives, and other financial securities. Moreover, the company also provides liquidity services and other financial services to a wide range of customers.
Written by Amit Madnani
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