This Iron & Steel Industrials penny stock hit a 20% upper circuit within the first hour of market open. According to its NSE filing dated 28th August 2023, the company has confirmed a capacity expansion for one of its product verticals and bagging order of size that is roughly 66% of its market cap. This stock was listed in late April 2023, and has already returned 44% to investors since listing.
A G Universal Ltd (“AGU”) received an order for PVC conduit pipes CAT-6 cable and Flexible Cable worth Rs. ~20 crore from Transline Technologies Ltd, which is a prominent player in the technology and services sector for projects at Indian Railways. This huge order is scheduled to be executed starting from September 2023 and expected to be completed in 45 days following that.
The company also announced plans for “ground breaking” expansion to double the capacity of Aluminum Extrusion production. The plan is to be carried out by the end of this calendar year. The company’s rationale for the expansion is that it is seeing increasing demand for aluminum extrusion products across a diverse set of verticals.
Mr. Amit Gupta, MD of AGU commenting on these developments, stated that he was thrilled to have this substantial order that is one of the largest in company history and that he is glad to have been trusted as a partner by Transline for the task.
He further stated that huge orders like this reflects growing confidence of customers in AGU that it is a reliable supplier and emphasized the company’s commitment to deliver highest quality products within the stringent requirements.
AGU trades in various steel and iron products in India. Its key operating segments include the trading and Real Estate Division. The company offers mild steel, stainless steel products, PVC conduits of various types. It also invests in properties. AGU was incorporated in 2008 and based out of New Delhi, India.
Disclaimer: Since penny stocks are generally illiquid, even a small increase in volume of buy orders can lead to the stock hitting its upper circuit. Even though the stock prices come under an average buying range for retail investors and provide huge upsides, penny stocks are prone to huge risks to retail investors. As such, you should consult your financial advisor before taking an entry into such stocks.
Written by Sandeep R
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
