Even as the domestic benchmark indices witnessed wild swings in January due to rising crude prices and bond yields as well as policy tightening by central banks globally, several penny stocks managed to give multibagger returns to their shareholders during this period. The BSE Sensex and the NSE Nifty delivered flat returns in the last one month, while investors reaped massive gains by investing in penny stocks.
Textile company A.K. Spintex is one such penny stock that has given more than 200% return to its shareholders in one month time only. The strong rally in A.K. Spintex has divided market pundits as there was no valid reason for it. The company in a clarification to the exchange said that “the movement in the share price is purely market driven and may be combination of various factors including market conditions”.
The Rajasthan-based textile company has gained as much as 206% in the last one month, with its shares jumping from ₹33.5 apiece on January 3, to ₹102.6 intraday today. The stock has hit the upper circuit of 5% for 21 straight sessions out of 23 trading days.
If an investor had invested ₹1 lakh in this textile stock on January 3, 2022, it would have turned into more than ₹3 lakh at present.
A.K. Spintex shares have risen 364% over six month period and 257% in the last one year. The stock has given lesser returns in long term in comparison to short horizon, rising 62% in three years and 110% over the past five years.
On Thursday, A.K. Spintex share opened lower for the second consecutive session and hit a lower circuit of 5% for the second day. It has fallen 9.72% in the last two sessions. With a market capitalisation of ₹51.63 crore, the microcap stock was trading higher than 20-day, 50-day, 100-day, and 200-day moving averages, but lower than 5-day average.
Technically, the stock turned ‘Bullish’ from ‘Sideways’ on January 4, 2022 at ₹40.20 apiece, as per stock research platform Markets Mojo. It hit a 52-week high of ₹119.30 on February 2, 2022, and a 52-week low of ₹18.10 on August 26, 2021.
For the second quarter ended September 30, 2021, the company reported a standalone net profit of ₹0.04 crore as compared to ₹0.23 crore in the same period last year, a decline of 82.6% on a year-on-year basis. However, net revenue surged by 56.5% to ₹17.05 crore as against ₹10.89 crore in the corresponding period last year.
The company had posted a total income of ₹289.14 crores during the 12 months period ended March 31, 2021, compared to ₹314.20 crore in the previous fiscal. The net profit increased to ₹75.04 crore, from ₹51.47 crore in the year ended March 31, 2020.
Based in Bhilwara, Rajasthan, the company processes synthetic and cotton grey fabric on job-work basis, and also undertakes dyeing and printing. The board of A.K. Spintex is scheduled to meet on February 10 to consider and approve financial results for the quarter and ended December 31, 2021.