On Tuesday’s trade, a penny stock jumped by 20 percent after receiving an eligibility certificate worth ₹11.14 crore incentive under the Package Scheme of Incentives 2019 (PSI) by the government of Maharashtra in favour of Resgen Ltd.
With a market capitalization of ₹172 crore, Resgen Ltd. stock rose by 20 percent from its previous close of ₹68.23 a piece to an intraday high of ₹81.87 a piece.
Resgen Ltd. received an eligibility certificate under PSI-2019 amounting to ₹11.14 crore. As per the company exchange filing, the company is entitled to claim the incentives for a period of ten years for making investments towards their project of manufacturing products, including ‘Pyrolysis oil’ with a capacity of 5000 litres per day and ‘Carbon Black’ with a capacity of 50 kg per day. The raw materials include thermoplastics, polypropylene, acrylic, and PVC.
On a YoY basis, the company’s revenue from operations increased by 390 percent, from ₹4.81 crore in FY22 to ₹23.58 crore in Q2 FY24, and in the same period, the net profits also increased by 449 percent, from ₹0.76 crore to ₹4.17 crore.
The shareholder pattern of the company shows that 67.22 percent is held by the promoters, with the remaining 32.78 percent held by the public.
As of FY23, the company has reported a return on capital employed (ROCE) of 14.23 percent and a return on equity (ROE) of 9.65 percent.
ResGen Ltd. was founded on September 29, 2018 as a Private Limited Company And transitioned into a public limited company by July 1, 2022, headquartered in Mumbai. ResGen Ltd. is envisioned to make environment-saving projects commercially viable and highly scalable.
Written By Praveen R
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