This Penny stock became a multibagger in one year, made 1 lakh 41.97 lakh

Multibagger Stock: The stock of Gita Renewable Energy has given a return of 4,097 per cent in one year. On October 29, 2020, the stock closed at Rs 6.07 and on Friday, October 29, 2021, it rose to a high of Rs 254.80 on the Bombay Stock Exchange (BSE).

An amount of Rs 1 lakh invested in the shares of Geeta Renewable Energy a year ago would have become Rs 41.97 lakh today. In comparison, the Sensex has gained 50.74 per cent during this period.

On October 26 this year, the stock had reached a 52-week high of Rs 328.35. However, since then profit-booking has been seen in it. Share of Geeta Renewable Energy is higher than 20-day, 50-day, 100-day and 200-day moving averages but lower than 5-day moving averages.

The stock has been included under Phase II of the Graded Surveillance Measures (GSM) mechanism on the BSE. Under GSM, some identified securities are subject to better monitoring and surveillance. Promoters held 73.05 per cent stake in the firm at the end of September quarter and public shareholders held 26.95 per cent.

5,668 public shareholders held 11.08 lakh shares of the firm. Of these, 5,422 shareholders held equity holdings up to Rs 2 lakh. At the end of September quarter, only three shareholders with 2.45% stake had a capital of more than Rs 2 lakh.

financial performance of the company
However, the unprecedented rise in the stock of Geeta Renewable Energy does not reflect the financial performance of the firm. The firm has been incurring losses continuously since the quarter ended September 2017 except for the March and June 2021 quarters.

It had made a profit of Rs 15 lakh in the March quarter. The company made a profit of Rs 36 lakh in the quarter ended June. In fact, over the past five years, the firm’s historical annual earnings growth has been negative at -63 per cent.

The company reported a rise of 176.60 per cent in net profit for the June quarter in 2021, when it reported a profit of Rs 36 lakh as against a loss of Rs 47 lakh in the corresponding quarter of the previous fiscal.

On a quarter-on-quarter basis, the net profit grew 140 per cent from a loss of Rs 15 lakh in the March quarter of the previous fiscal. Sales in the June quarter stood at Rs 6 lakh, unchanged from the March quarter.

Geeta Renewable Energy is engaged in the generation of electricity from renewable resources including wind, solar and hydro. The company is located in Gummidipondi, Tamil Nadu.

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