On Friday, a penny stock company soared by 1.6 percent after the company approved an investment in a gold ore processing business. It also delivered a multibagger return of 171 percent in one year.
With a market capitalization of Rs 377 crore, the Shera Energy Ltd. stock price rose by 1.6 percent from its previous close of 165.35 per share to an intraday high of Rs 169.95 per share.
According to the company’s exchange filing, Shera Energy Ltd.’s Board of Directors has approved investing in a gold ore processing business named Sao Shera Gold Ltd., which has to be incorporated in Zambia.
To conduct operations involving the acquisition and refining of gold ores and other ancillary activities and industrial activities. The company has acquired a 75 percent shareholding with a cost of acquisition of $3,00,000.
On a yearly basis, the revenue from operations of the company increased by 38 percent from Rs 150.68 crore in Q3 FY22 to Rs 206.12 crore in Q3 FY23, and in the same period, net profits also increased by 131 percent from Rs 2.25 crore to Rs 5.2 crore.
Sequentially, on a quarterly basis, the revenue from operations increased by 13 percent from Rs 182.61 crore in Q2 FY24 to Rs 206.12 crore in Q3 FY24, and in the same period, the net profits also increased by 78 percent from Rs 2.92 percent to Rs 5.2 percent.
It delivered a return on equity of 11.7 percent and a net profit margin of 1.31 percent in the trailing twelve months (TTM).
The shareholder pattern of the company shows that 63.58 percent is held by the promoter, followed by 36.20 percent by the public, and the remaining 0.22 percent by the foreign institutional investors (FII).
Shera Energy Ltd. is an indian based company established in 2009 and is engaged in the business of manufacturing winding wires and strips made of non-ferrous metals, primarily copper and aluminium.
The company offers a wide range of products, including paper covered wires, enamel and fibre covered wires, round wires, rectangular wires, bunched wires, tubes, rods, strips, etc. These products are primarily used in transformers, motors, and electrical panels.
Written by Praveen R
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