Penny stock hit upper circuit for 5th session, company to invest in EV & Green Energy sector
With a market valuation of ₹59.04 Cr, Deep Diamond India Ltd. is a small-cap company that operates in the consumer discretionary industry.
PremiumWith a market valuation of ₹59.04 Cr, Deep Diamond India Ltd. is a small-cap company that operates in the consumer discretionary industry. The stock has spent the past five sessions in the upper circuit. As the firm announces to invest in the E V & Green Energy sector like Solar, Wind, etc., the stock was also locked in the upper circuit of 5% today at ₹18.45.
The company has said in a stock exchange filing that its Board of Directors have approved “To invest the surplus monies of the company not immediately required for the business to purchase or subscribe for shares and securities of any other company which inter alia includes new age businesses such as Electric Vehicle Business, Green Energy such as Solar, Wind, Bio-mass, waste management etc. and such other various business segment or sector as deemed fit as long as the same is not prohibited by any law in force in the Country which the Company may think necessary for the purpose of its business."’
With the recent government support for the EV industry, the company has strong growth potential. According to the Minister of Road Transport and Highways, Nitin Gadkari: “two-wheeler EVs rose by 422%, 3 wheelers by 75%, and 4 wheelers by 230% between 2019 and 2021. The number of electric buses also increased by over 1200% during this period." These indicate a sharp rise in growth potential for Deep Diamond.
In the last 1 year, the stock price has risen from ₹1.53 as of 27th January 2022 to the current price level, logging in a whopping multibagger return of 1,105.88%, hence if an investor had invested ₹1 lakh in the shares of Deep Diamond 1 year ago, then his or her return today would have been ₹12.05 lakh. The stock has appreciated by 47.72% YTD, and over the past six months, it has achieved a multibagger return of 306.39%. The stock has climbed 60.43% over the past month and 28.12% over the last five trading sessions.
The company had recently split its stock in the ratio of 10:1. The face value of each share of Deep Diamond was ₹10 before the sub-division. After the split, the face value now is ₹1. Sales for the December 2022 quarter climbed by 233.33 per cent to ₹1.50 crore, according to the firm. The company's net profit increased 6000% to ₹0.61 crore in Q3FY23 from ₹0.01 crore in the same period prior fiscal year.
The shares of Deep Diamond India closed today on the BSE at 4.83% upper circuit limit of ₹18.45 per share, representing a fresh 1-year high. The stock recorded a total volume of 523,731 shares today compared to the 20-Day average volume of 501,598 shares. The firm has a strong annual EPS growth rate and the stock has an EPS of ₹3.02. Deep Diamonds reported both growths in quarterly net profit with higher profit margins (YoY). Additionally, it is the only company over the last four quarters to have improved earnings with zero-debt status.
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