Shares of Signet Industries hit the 20% upper circuit on the bourses to reach a fresh 52-week high of ₹52.20 apiece on the National Stock Exchange (NSE).
According to an exchange filing, the company recently received orders worth approximately ₹ 120 crores from various EPC contractors. These orders are for pipes in water supply projects in the states including Madhya Pradesh, Uttar Pradesh, Orissa, Rajasthan and Maharashtra. The company said that these orders will play a vital role and will add one more milestone in its growth.
Signet Industries is engaged in three businesses: manufacturing, wind power units and trading. It manufactures irrigation pipes and plastic products and is involved in merchant trading of various products. Moreover, its wind power unit segment includes wind turbine power units.
With a market capitalization of ₹ 128 crores and a share price of ₹ 52.20, Signet Industries is a penny stock. It has a low return on equity of 6.50% and a high debt-to-equity ratio of 1.50. However, it has a dividend yield of 1.15%. The company’s promoters hold a 72.57% stake in the company and retail investors hold a 27.43% stake in it.
It is important to note that penny stocks are extremely risky investments. They may be subject to pump-and-dump schemes and may be significantly illiquid as compared to other stocks. Therefore investors should thoroughly analyze them before investing in them.
Written By Simran Bafna
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