Microcap stock Nidhi Granites has given multifold returns to its investors in the last 1 year. The stock has skyrocketed around 333 percent in this period from ₹68.21 in April 2023 to currently trade at its record high ₹295.15. The stock also hit its 5 percent upper circuit for 7 straight sessions till April 30.
This recent surge has led to the stock soar 404.5 percent from its 52-week low of ₹58.50, hit on August 23, 2023.
Meanwhile, in 2024 year-to-date (YTD), the stock has also given multibagger returns, rallying almost 136 percent from ₹125.22 in December 2023. This year so far, the scrip has given positive returns in all 4 months till date. The stock has jumped 35 percent in April, extending gains for the eighth straight month since September 2023. Between September 2023 and April 2024, the stock surged over 377 percent.
Just in 2024 YTD, the stock gained 36.5 percent in March, 1.3 percent in February and 26 percent in January 2024.
In the long term as well, the stock has performed splendidly, rising over 769 percent in 3 years (from ₹33.95 in April 2021) and over 825 percent in the last 5 years (from ₹31.90 in April 2019).
Earnings
Nidhi Granites experienced significant growth in net profit and sales in the quarter ending in December 2023 (Q3FY24) compared to the same quarter the previous year. The net profit increased by 275 percent year-on-year (YoY) from ₹0.12 crore in Q3FY23 to ₹0.45 crore in Q3FY24. Meanwhile, its sales increased by 55.62 percent YoY to ₹10.66 crore in the quarter under review from ₹6.85 crore in the same quarter last year. Additionally, its EBIT rose from ₹0.22 crore in Q3FY23 to ₹0.69 crore in Q3FY24.
Brokerage view
Based on the analysis provided by MarketsMOJO, Nidhi Granites seems to be performing exceptionally well in the stock market. The company’s stock is trading above key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), indicating a strong upward trend. This suggests that the company is in a robust position financially and has been experiencing consistent growth.
However, Nidhi Granites has not yet released its financial results for the quarter ending March 31, 2024.
Comparing Nidhi Granites’ 1-year performance of around 333 percent to Sensex’s growth of 21.88 percent further emphasizes the company’s impressive growth potential and market outperformance. The recommendation to ‘Hold’ the stock suggests that while the company’s stock is performing well, investors should maintain their positions and monitor the company’s progress.
Nidhi Granites’ steady rise and recent all-time high are promising signs for investors and signal that the company is worth watching in the mining and minerals industry.
What is a microcap stock?
Microcap stocks refer to publicly traded companies with a relatively small market capitalization. The specific threshold for a microcap stock may vary, but typically, it refers to companies with a market capitalization under ₹500 crore (approximately $68 million).
These stocks are often considered higher-risk investments due to their size and lower liquidity, which can lead to significant price volatility. However, microcap stocks may also offer greater growth potential as emerging businesses develop and expand.
Investors in microcap stocks should conduct thorough research and due diligence to understand a company’s financials, business model, and management. Additionally, diversifying investments across different sectors can help manage risk. While microcap stocks can be influenced by market sentiment and news, successful investments in these stocks may yield substantial returns, making them an attractive option for some investors with a higher risk tolerance and long-term perspective.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.
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Published: 01 May 2024, 03:43 PM IST