Multibagger stock: Once a penny stock, Marsons has skyrocketed 602% in 2024 YTD, 831% in 1 year
One a penny stock, Marsons has given multifold returns to its investors this year so far as well as in the last one year. The stock has skyrocketed around 602 percent in 2024 YTD from ₹7.75 in December 2023 to currently trade at its 52-week high 54.38.
One a penny stock, Marsons has given multifold returns to its investors this year so far as well as in the last one year. The stock has skyrocketed around 602 percent in 2024 YTD from ₹7.75 in December 2023 to currently trade at its 52-week high 54.38.
Meanwhile, it has soared over 831 percent in the last one year.
This recent surge has led to the stock soar 998.5 percent from its 52-week low of ₹4.95, hit on July 25, 2023.
This year so far, the scrip has given positive returns in all 5 months till date. The stock has risen over 8 percent in May, extending gains for the fifth straight month. Meanwhile, it jumped almost 37 percent in April, 39 percent in March, 45 percent in February and gave multibagger 135.5 percent returns in January 2024.
Read here: Small-cap stock below ₹10: FIIs pick up stake in penny stock during Q4FY24
In the long term as well, the stock has performed splendidly, rising over 447 percent in 3 years (from ₹9.93 in April 2021) and over 543 percent in the last 5 years (from ₹8.45 in April 2019). However it is important to note that the stock is currently trading under ESM: Stage 2
What is ESM?
The Enhanced Surveillance Measure (ESM) is a regulatory framework implemented by the National Stock Exchange (NSE) in India. It aims to enhance monitoring and surveillance of listed companies to ensure investor protection and market integrity.
Under Stage I, the trading of the securities is settled through a trade-for-trade mechanism with a price band of 5 percent, or 2 percent.
Read here: Multibagger: Jhandewalas Foods surged over 1,900% in 1 year, 310% in 2024 YTD
Under Stage II, the surveillance action permits trading on all trading days under periodic call auctions with trade-for-trade settlement and 2 percent price band. Earlier this stage permitted trading just once a week.
About the firm
Marsons Limited engages in manufacturing, supplying, erecting, testing, and commissioning of Power and Distribution transformers in India. It offers distribution and power transformers ranging from 10 KVA to 160 MVA, 220 KV; and arc, submerged arc, ladle, induction, and DC arc furnace transformers. The company provides USS, dry type, cast resin, solar, and instrumental transformers, as well as after-sales services. Marsons Limited was incorporated in 1976 and is based in Kolkata, India.
Earnings
In the December quarter, the net profit of Marsons declined 74.58 percent year-on-year (YoY) to ₹0.15 crore from ₹0.59 crore in Q3FY23. Meanwhile, its sales also fell 64.5 percent YoY to ₹0.65 crore in the quarter under review as against ₹1.83 crore in the same quarter last year.
Read here: Multibagger: This penny stock jumped over 6,000% in 3 years; should you invest?
Brokerage view
According to ICICI Direct's analysis, Marsons exhibits several positive factors contributing to its strong momentum in the market. Firstly, the stock's price is performing well, as it is currently trading above its short-, medium-, and long-term moving averages, indicating an upward trend and positive market sentiment. Secondly, Marsons boasts strong annual earnings per share (EPS) growth, demonstrating its financial strength and ability to generate increasing profits over time.
Additionally, the stock has reached a new 52-week high today, signalling strong performance and attracting attention from investors. These factors suggest that Marsons is positioned for potential continued success in the market.
Meanwhile, its weaknesses, as per the brokerage, are:
- High Debt
- Degrowth in Quarterly Revenue and Profit in Recent Results(YoY)
- Fall in Quarterly Revenue and Net Profit (YoY)
Read here: Multibagger: This stock has skyrocketed over 29,000% in 3 years
What is a penny stock?
Penny stocks, trading for less than ₹10 per share in the Indian market, are shares of small companies with low market capitalization. They have limited liquidity, resulting in fewer transactions compared to larger stocks, and their low price offers the potential for significant gains. However, these speculative investments lack the rigorous financial reporting and oversight seen in larger companies, making them vulnerable to price manipulation and fraud.
Penny stocks tend to exhibit high volatility, increasing risks for investors. Thorough research and risk management are essential to navigate the uncertainties of penny stock trading and minimise potential losses.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.
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