Penny Stock Hit 5% Upper Circuit After Q2 Revenue Climbs 104% YoY: Do You Own?

Small-cap petrochemical firm Kshitij Polyline began on the NSE today at Rs 6.80 per share and locked in an upper circuit of 5% at Rs 6.90 in the morning deals which is 0.57 times its book value. The spike in stock price was seen after the company released its Q2 results and a change in management.

On a consolidated basis, the company recorded revenue from operations of Rs 16.48 Cr during the quarter ended 30th September 2023 up by 104.21% YoY from Rs 8.07 Cr reported during the year-ago quarter. Kshitij Polyline reported a net loss of Rs 1.49 Cr during Q2FY24 compared to a net profit of Rs 0.08 Cr in Q2FY23.

Last week, Mr. Bharat Hemraj Gala tendered his resignation from the post of Managing Director and Chief Executive Officer of the company with immediate effect from 19th October due to personal reasons and pre-occupation.
It seems something new is cooking in the company. Watch out.

One of the top manufacturers, suppliers, distributors, and exporters of stationery and lamination equipment is Kshitij Polyline Ltd. Countries like Uganda, Lebanon, Sri Lanka, South Africa, Bhutan, Nepal, and Dubai are among those to whom the firm provides its products. The company recently announced that it is entering into solar, and green energy segments which in return will trigger the company's growth in terms of profitability and broaden its business footprint in the nation.

The stock has gone up by 20.15% over the past five years and by 75.0% over the previous three years. The stock has dropped 87.58% over the last year, so far in 2023, it declined 74.40% on a YTD basis. The penny stock has gained 21.05% in the last month, but the scrip has dropped 59.41% in the last six months. The stock is currently overbought and growing at a slower rate than the market's financials.

The scrip reached a 52-week-high of Rs 70.80 on (03-Nov-2022) and a 52-week-low of Rs 4.75 on (28-Aug-2023), implying that at the current market price, the stock is trading at a discount of 90.25% from 1 year high and with an upside gap of 45.26% from its 1 year low.