Multibagger Stock Tips: Shares of Proseed India has given 11,118% return to its shareholders in one year. Microcap stock, which stood at Rs 0.32 on August 20, 2021, today touched an all-time high of Rs 35.90 on BSE. An amount of Rs 1 lakh invested in Proseed India stock 12 months ago would have turned into Rs 1.12 crore today. In comparison, the Sensex rose 44.98% during this period.
The stock touched a record high of Rs 35.90, up 4.97% from the previous close of Rs 34.20 on BSE. The stock has gained 175.1% in the last 21 sessions. The stock opened today with a gain of 4.97% and remained trapped in the upper circuit in the afternoon session.
The stock of Proseed India is trading above the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The market cap of the firm increased to Rs 370.11 crore. The stock has gained 175.1% in one month.
Company is running in loss
However, the stellar performance of the stock is not commensurate with the financial position of the firm. The company is running in loss. Investors must consider this aspect before investing in this stock. In the last 10 quarters, the firm has seen zero sales. It last recorded sales of Rs 0.54 crore in the quarter ended December 2018.
In the quarter ended June 2021, the company reported a loss of Rs 0.30 crore as against a loss of Rs 0.09 crore in the corresponding quarter of the previous fiscal. The company’s net profit on a quarterly basis fell 102.32% from a profit of Rs 12.94 crore.
Investors should also note that the company is in the first stage of the Insolvency Resolution Process (IRP). The public shareholders have 100% stake in the firm with the promoters having zero stake.
Small shareholders with individual share capital up to Rs 2 lakh hold the maximum stake (93.92%) in the company. At the end of June quarter of the current financial year, 19,918 shareholders held 29.07 lakh shares of the company. In the eight financial years preceding the financial year of March 2021, the company has incurred losses. The company made a profit of Rs 12.67 crore in the financial year ended March 2021.
The company is engaged in providing web development, web maintenance and support services to its step down subsidiary, Globe 7 Pte Ltd. The company focuses on two areas: online advertising and securities and derivatives trading.
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