On Friday, a buoyant sentiment was apparent in the stock market. The BSE Sensex Index charted an upward journey, growing by 0.74%, and closing at 65,721.25. Breaking down the activity on the BSE: out of 3,720 traded stocks, 2,196 ascended, 1,384 took a dip, and 140 remained static.
A Penny Stock Makes Its Mark
Amidst this positive wave, a particular penny stock priced under Rs 5 was conspicuously notable. Earning a spot amongst the BSE’s Top Gainers, this stock hit its daily zenith, getting locked in the upper circuit. This star performer was none other than Taparia Tools Ltd.
Taparia Tools Ltd.: An Overview
Taparia Tools isn’t just another name in the stock market; it has a strong foundation. The firm’s forte lies in manufacturing and distributing manual tools. Their expansive manufacturing ambit includes an advanced forge shop, state-of-the-art machine shop, meticulous heat treatment processes, polishing procedures, and an adept nickel-chrome plating system.
The past five years have witnessed Taparia’s profit trajectory taking a sharp upward turn, boasting a CAGR of 37.2%. Their balance sheet reflects a debt-free status – a testimony to their robust financial health. Their Return on Equity (ROE) over a span of three years stands impressive at 27.6%. This underscores their efficiency in using equity for substantial profit generation. What’s even more commendable? Their commitment to shareholders, evident from a hefty dividend payout rate of 48.6%.
Marking another significant event this financial year, Taparia declared bonus shares at a ratio of 4:1 and finalized a dividend of Rs 77.50 per share for equity shareholders. Important dates to note were July 11, 2023 (ex-bonus) and June 26, 2023 (ex-dividend).
By The Numbers
Delving into the figures, Taparia Tools claims a market cap of Rs 3.51 crore. Their recent quarterly and annual results paint an optimistic picture: a 14.37% surge in net sales to Rs 764 crore and a 10.77% profit escalation to Rs 72 crore in FY23 as compared to FY22. Offering a lucrative dividend yield of 1,342% and an EPS of Rs 47.60, the stock’s trading metrics further amplify its appeal, given it’s trading at a mere 0.01 times its book value of Rs 178.
Investor’s Note: Taparia Tools, despite being a penny stock, beckons keen investor attention for its promising metrics.
Disclaimer: This article is for informational purposes and does not serve as investment advice.
Key Data Points:
|Market Capitalization||Rs 3.51 crore|
|Net Sales (FY23)||Rs 764 crore|
|Net Profit (FY23)||Rs 72 crore|
|Book Value||Rs 178|