This Penny Multibagger Stock Jumped Nearly 6950% In 4-Months, Should You Buy?

One of the stocks that has surged by leaps and bounds over the last four months is the stock of Baroda Corporation. The shares have surged from Rs 4.25 to Rs 282. The reasons for the sharp surge are not understood as yet. However, it translates into whopping gains of 6950% in just 4 months time.

The stock was trading at around Rs 4 at the beginning of June and has now jumped to close at Rs 282 on Oct 20, 2022.

Should you buy this multibagger penny stock?

The straight forward answer is a no. As we write the stock has ended at the lower end of the circuit filter with only sellers in the counter. There was a mandatory open offer to acquire up to 59,56,953 (Fifty-Nine Lakhs Fifty-Six Thousand Nine Hundred and FiftyThree) Equity Shares, representing 26.00% (Twenty-Six Percent) of Voting Share Capital of the Target Company from the Public Shareholders from select individuals.

This was one development that had happened at the company. We would not advise any buying in the stock of the company.
The Company is engaged in textile industry, in Surat City of Gujarat, a city basically known worldwide for its Diamond and Textile Business. Plants & Machineries of the Company is conveniently located at the heart of City. The company has been in the business of Nylon Tyre Cord, Viscose Filament Yarn for many decades now.

"The financial performance of the company is not so good during the year under review as there is no production activities carried on by the company and due to that there is no income from operations generated by the company. The operations of the company are totally stopped and which also affect the financial performance of the company," the annual report of the company for FY 2021-22 stated.

52-week high and lows of Baroda Corporation stock

The shares of the company are listed on the Bombay Stock Exchange. The shares are now trading at Rs 282, as against the 52-week low price of Rs 3. we believe that investing at these levels is full of risk and investors should stay away from the stock.

With the markets being exceedingly volatile, stocks can fall successively to the lower end of the circuit filter and investors could get trapped. It is therefore advised to continue buying into stocks only if there has been a good profits and dividend track record. This company has not declared any dividends for FY 20221-22.

Disclaimer

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