Multibagger penny stock under Rs 5: This micro-cap company reports a 140 per cent jump in net profit; do you own it?

Ashirwad Capital Ltd is engaged in the business of investment, announced its Quarterly Results (Q1FY24) ended June 30, 2023. Details below:

Quarterly comparison - Q1FY24 vs Q1FY23: -

• Revenue from Operations increased by 128.71 per cent from Rs 0.10 crore in Q1FY23 to Rs 0.23 crore in Q1FY24.
• Operating profit increased by 118.63 per cent from Rs 0.10 crore in Q1FY23 to Rs 0.22 crore in Q1FY24. 
• Net Profit increased by 140 per cent from a net profit of Rs 0.09 crore in Q1FY23 to a net profit of Rs 0.20 crore in Q1FY24.

Recently, The Board of Directors of the company have recommended and approved the bonus Issue of equity shares in the proportion of 1 equity share of Rs 1 each for every 2 Equity Shares of Rs 1 each held by shareholders of the company as on the record date. The share ex-record date was Wednesday, June 19, 2023.  

On Friday, one of the gainers on BSE, shares of Ashirwad Capital Ltd zoomed 5 per cent upper circuit to Rs 3.84 per share from its previous closing of Rs 3.66. The stock has a 52-week high of Rs 5.22 per share and a 52-week low of Rs 2.49 per share.

According to the financials, Ashirwad Capital has a market cap of Rs 23 crore with a 3-year CAGR of 38 per cent. The company is almost debt free. The shares of the company are hitting back-to-back upper circuits in recent trading sessions.

The stock gave multibagger returns of 180 per cent in just 3 years whereas BSE Financial Services Index is up by 85 per cent. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.