Despite the recent sell-off in Indian equities, some select stocks from the broader market have managed to deliver a skyrocketing return to investors in 2022. Textile manufacturer Tine Agro is one such penny stock that has given multibagger returns to its shareholders in a difficult market situation.
The company, formerly known as Kansal Fibres, is engaged in the trading, export, and import of agricultural products in India. The Ahmedabad-based firm is currently under short-term additional surveillance measure (ASM) stage-two framework on the BSE due to high volatility.
In the last three months, this penny stock has delivered more than 13 times returns to investors, thanks to improvement in its financial performance. The stock has rallied as much as 1,337% during this period, surging from its 52-week low of ₹3.9 on December 9, 2021, to a fresh high of ₹56.05 today on the BSE. Investment of 1 lakh in this stock three months ago would have turned to Rs ₹14.37 lakh at present.
Given that the stock is under domestic stock exchange surveillance, investors need to be extra cautious and do due diligence while investing in this security.
The lesser-known textile stock has been hitting the upper circuit for the last 21 sessions and has rallied 172% during this period. The stock has been placed under a price band of 5% to prevent excess volatility in the share price.
On Monday, the stock opened higher at ₹55.80 against the previous close price of ₹53.40 and gained as much as 4.96% to hit a fresh 52-week high of ₹56.05 on the BSE. There was heavy volume as 9.39 lakh shares worth ₹5.26 crore changed hands over the counter as compared to two-week average volume of 1.11 lakh scrips. The market capitalisation of the company surged to ₹31.80 crore. In contrast, the BSE benchmark Sensex closed 1,491 points lower at 52,842.
Technically, the stock is in a ‘mildly bullish’ range, trading higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Tine Agro shares have gained 21% in one week, 147% in a month and 724% since the beginning of the calendar year 2022 (YTD basis). It has given 460% returns in six months and 673% over one year period.
For the December quarter of 2021, the Gujarat-based company reported a net profit of ₹0.51 crore as against net loss of ₹0.06 crore in the same period last year and ₹0.41 crore profit in the September quarter of 2021. The total income rose to 4.49 crore on a sequential basis from 4.25 crore in Q2 FY22.
For the 9-month period ended December 2021, the textile firm posted net profit of ₹1.16 crore compared with net loss of ₹0.09 in the same period last year. The total income increased to ₹9.03 crore during the period under review.