Penny Stock engaged in the business of manufacturing a wide range of rubber products hit a 5 percent upper circuit in the day’s trade after expanding its operational capabilities thereby increasing its profitability.
In the day’s trade, the shares of Lead Reclaim And Rubber Products Limited hit a 5 percent upper circuit at Rs. 36.20 and its market capitalization is Rs. 27 Crores
Lead Reclaim And Rubber Products Limited has installed a Radial tyre crumb & reclaim plant at the Factory, this will help the Company to serve/contribute more customer base, increase the production capacity, and reduce the cost of raw materials, which will result in an increase in the profitability of the Company.
Lead Reclaim and Rubber Products Limited is engaged in the business of manufacturing a wide range of rubber products like reclaimed rubber, crumb rubber powder, and rubber granules.
The company’s revenue from operations declined 14.95 percent from Rs. 10.3 Crores in FY22 to Rs. 8.76 Crores in FY23, accompanied by increasing profits of Rs. 50 Lakhs to Rs. 83 Lakhs.
It has reported a return on equity (ROE) of 12.17 percent and a return on capital employed (ROCE) of 10.01 percent, it is making decent returns on its equity and capital employed.
Note: Due to the illiquidity of penny stocks, the stock can hit its assigned circuit levels with just a minor increase in the volume of trades. Even if the stock prices are within the usual buying range for the investors and offer enormous potential profits, penny stocks are quite dangerous for retail investors.
Written by: Bharath K.S
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