On Tuesday, the share price of the small-cap company rose by 3.7 percent to its 52-week high of Rs 818 per share from its previous close of Rs 788.45 after the purchase agreement executed between the promoter and promoter group.
According to the filing of Praveg Limited, the company promoter Paraskumar Maneklal Patel sold 21 Lakh equity shares which is 9.3 percent of the company to the promoter Ashaben Vishnukumar Patel.
Furthermore, Ashaben Vishnukumar Patel’s post-acquisition shareholding increased from 21 to 43 lakh equity shares, or 9.5 to 18.8 percent of the company.
According to the company report, the net revenue decreased by 19 percent year over year, from Rs 17.32 crore in Q2FY23 to Rs 14.03 crore in Q2FY24. Their revenue rose by 17 percent sequentially from Rs 11.96 crore in Q1FY24 to the current levels.
In addition, the company’s net profit dropped by 65 percent year over year, from Rs 6.04 crores in Q2FY23 to Rs 2.1 crores in Q2FY24. Their profit increased by 79 percent on a quarterly basis from Rs 1.17 crore in Q1FY24 to the current levels.
The small-cap stock has a market capitalization of Rs 1,843 Crores, the share price of the company rose by 60 percent in the last six months and 186 percent in the last year. For instance, if an investor invested Rs 1 Lakh the current value of the investment would be 2.86 Lakhs.
Praveg Ltd has a low price-to-earnings ratio of 90 and it has zero debt-to-equity ratio, a return on equity of 43 percent, a return on capital employed of 54 percent, and a net profit margin of 33 percent.
The company promoter owns 55 percent of the company, the general public owns 39.97 percent, foreign institutional investors own 5 percent, and domestic institutional investors own 0.03 percent.
Praveg Communications (India) Limited was formed in 2016 due to the merger of Praveg Communications Limited and Sword and Shield Pharma Limited. It is an advertising firm with a core Exhibition and Event Management competency.
Written by Sriram KV
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