Promoters bought 1,12,03,970 shares & Penny stock under Re 1: Company signs MoU with Wanek Furniture Vietnam to boost plywood supply!

Suncare Traders Limited has announced that its Board of Directors has approved a non-binding Memorandum of Understanding (MoU) with Wanek Furniture Co., Vietnam. This MoU, established during an official delegation visit to Vietnam, is aimed at boosting the supply of diverse, high-quality indigenous plywood materials. This strategic move aligns with Suncare Traders' long-term vision to enhance its supply chain to meet both growing domestic and export demand for plywood. At this initial stage, specific revenue generation from this initiative is not anticipated.

Suncare Traders Ltd, established in 1997, primarily engages in the trading of laminates and plywood and is also involved in solar power generation. The company's diverse product profile includes various types of laminates such as Frosty White, Brown, Designer, Blue Mica, Wood, Liner, Grey, Shiney Brown, Glossy and Bloom laminates, alongside different steel doors like Flower Wenge, Elegant Oak and Farm Maple doors. However, the company is currently facing operational challenges due to a scarcity of working capital funds, which has impacted its ability to conduct business activities. The management is actively working on implementing cost-reduction measures to restore the company's operational status.

The promoters of the company bought 1,12,03,970 shares or 4.39 per cent stake in the company. On Friday, shares of Suncare Traders Limited plunged 6.06 per cent to Re 0.93 per share from its previous closing of Re 0.99 per share with a spurt in volume by more than 1.25 times on the BSE. The company has a market cap of Rs 23.72 crore and the stock is trading at 0.60 times its book value. The stock is up by 16.3 per cent from its 52-week low of Re 0.80 per share.

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