Rs 17 to Rs 548: This lighting stock turned into a multibagger in three years; fell 5% today

Shares of Focus Lighting and Fixtures Ltd have rallied 3050% in the last three years. The microcap stock, which closed at Rs 17.40 on May 11, 2020 ended at Rs 548.55 on the NSE today (May 11, 2023). The stock is not listed on BSE. An amount of Rs 1 lakh invested in the shares of Focus Lighting three years ago would have turned into Rs 31.35 lakh today. In comparison, Sensex has risen 98.14 per cent during the period.

The stock closed 4.97% lower at Rs 548.55 on BSE today. The stock opened marginally higher at Rs 579.80 today against the previous close of Rs 576.65 on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 43.2, signaling it's trading neither in overbought nor in oversold zone. Focus Lighting shares have a beta of 0.7, indicating very low volatility in a year. Focus Lighting shares are trading higher than the 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.

Total 1.32 lakh shares of the firm changed hands amounting to a turnover of Rs 7.37 crore on BSE. Market cap of the firm fell to Rs 717.44 crore on NSE. The stock hit a 52 week high of Rs 785 on May 2, 2023 and a 52-week low of Rs 80 on May 17, 2022.

Financial Performance

The stellar rally in the Focus Lighting stock reflects the financial performance of the firm in the last three years. In the March 2023 quarter, the firm reported a 53% rise in net profit to Rs 5.38 crore against Rs 3.51 crore in the corresponding quarter of previous fiscal. Sales rose 16.63% to Rs 40.89 crore in the March quarter against Rs 35.06 crore in the March quarter of 2022.

Operating profit climbed 68.31% to Rs 7.86 crore for the quarter ended March 2023 against Rs 4.67 crore in the corresponding quarter of the previous fiscal.

On a quarter-on-quarter basis, the firm reported a 48.47% fall in net profit from Rs 10.46 crore in the December 2022 quarter. Sales slipped 32.79% from Rs 60.84 crore in Q3 of the last fiscal.

On an annual basis, net profit zoomed 389.64% to Rs 23.16 crore for the fiscal ended March 2023 against Rs 4.73 crore for the fiscal ended March 2022. For the fiscal ended 2021, the firm logged a loss of Rs 1.89 crore.

Sales climbed 60% to Rs 168.58 crore in the March 2023 fiscal against Rs 105.39 crore for the fiscal ended March 2022. For the fiscal ended 2021, sales stood at Rs 60 crore.

About the Company

Focus Lighting and Fixtures Limited is engaged in the manufacturing and trading of light emitting diode (LED) lights and fixtures. The company’s segments include trading activities and manufacturing activities. The Company provides a range of verticals, which includes retail industry, office and home lighting, hospitality lighting, and lighting for infrastructure projects.

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