FII Backed Penny Stock Gains Over 15% Intraday: Do You Own?

With its well-established worldwide freight and trade network, East West Holdings Limited (EWHL) provides an all-in-one solution for handling and moving freight. EWHL uses cutting-edge international technology to deliver top-notch customised logistics solutions.

EWHL offers complete logistics solutions, including road transport, air freight forwarding operations, and ocean freight forwarding operations, through its wholly-owned subsidiary East West Freight Carriers Limited (EWFCL). The company came to the market to show its impact on 29th June 2016, with the initial value of the share price being just 3.91 Indian rupees, isn't that affordable for a common trading man? If you look at the data of the stock you may find it alluring that the return of just 1 week's return is 13.86%, and a 3 months' return is 27.78%.

East West Holdings Financials

The company has taken a step of over Rs.21 crores in investing operations which led to an increase of 221.38% YoY in FY23 which indicates purely development for both the company and its shareholders.

The EBIT value was Rs.2.47cr in the March quarter of 2023, was Rs. 2.57.cr in the June quarter of 2023. This change now brought the company's EBIT Margin to a remarkable 4.68%.

To do the talking in money we can say that the total expense of East West Holdings Ltd. in the March quarter was Rs. 51.86 crore which rose up to Rs. 52.34 crore in June quarter 2023.

During Q1FY24 its net loss came at Rs 0.02 Cr compared to Rs 0.09 Cr in Q4FY23.

East West Holdings Share price history

On Friday, the shares of East West Holdings closed on the BSE at Rs 5.75 apiece up by 15.93% from the previous close of Rs 4.96. The scrip made a 52-week-high of Rs 7.47 (12/12/2022) and a 52-week-low of Rs 3.83 on (29/03/2023), indicating that at the current market price, the penny stock is trading 23.02% below the 1 year high and 50.13% above the 1 year low.

Although the firm is offering its shares at 1.74 times book value and has experienced operating income growth at a three-year compound annual growth rate of over 105%, ROE and ROCE have not been particularly strong areas for the stock.

During Q2FY24, East West Holdings promoters' shareholding of 61.28%, FIIs stake of 6.78% and public stake of 31.94%.

Should we invest or not?

The company has a market capacity of Rs.73.36 crores with a sectoral market capacity rank of 36. This is the common question of every investor who is seeking the answers. In the words of wise men, the investors should have adequate knowledge of making their own decisions and no one is to force it. If you think of this company for a short-term investment then the logic would be perfectly right, this company has shown potential for short-term purposes and many visionaries think differently and invest as their choice.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.