Rs 17 to Rs 342: This penny stock turned into a multibagger in three months

Stock of Radhe Developers has delivered 1,904% returns to its shareholders in three months. The penny stock, which stood at Rs 17.07 on August 26, 2021, rose to a high of Rs 342.20 on the BSE today. An amount of Rs 1 lakh invested in Radhe Developers stock three months ago would have turned into Rs 20.04 lakh today. In comparison, Sensex has risen 2.87% during the period.

Radhe Developers shares hit all-time high of Rs 342.2 today, rising 4.99% against the previous close of Rs 325.95 on BSE.

The stock opened 5% higher today and was stuck in the upper circuit in the afternoon session. The share has gained 177.87% in the last 21 days.

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Radhe Developers stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The microcap share has gained 3,603% since the beginning of this year and zoomed 3,540% in one year.

Market cap of the firm rose to Rs 861.66 crore on BSE. Total 1.30 lakh shares changed hands amounting to a turnover of Rs 4.44 crore on BSE.

The stellar performance of the stock is not in line with the firm's financials.

The company is a loss making one, a key factor one should consider before entering the counter. In the last five quarters preceding the September one, the firm has incurred losses.

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 It clocked Rs 9.11 crore profit for the quarter ended September. On an annual basis, the firm widened its loss by 52.36% to Rs 2.91 crore for the fiscal ended March 2021 against Rs 1.91 crore loss for the fiscal ended March 2020.

Sales fell 76.94% to Rs 0.89 crore  in the last fiscal against Rs 3.86 crore sales for the fiscal ended March 2020.

In the two preceding fiscals March 2019 and March 2018, it could not clock any profit.

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Meanwhile, the share of the firm has outperformed its peers in last three months. While DLF share has risen 22 per cent, stock of another competitor Macrotech Developers has gained 54.67% during the period. Share of Godrej Properties has managed to climb 43.20 per cent since August 26 this year.

The board of the firm will meet today to consider increase the borrowing limits and fix the date, time and venue of the extra ordinary general meeting (EGM) and approve the draft notice calling the EGM and other incidental matter thereto.

Promoters raised their stake to 43.63% in last quarter against 43.05% for the quarter ended June 2021.  Five promoters of the firm held 1.09 crore shares at the end of September quarter. Public shareholders held 56.27% stake in the firm at the end of September quarter.

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13,306 shareholders owned 1.41 crore shares of the real estate firm. Small shareholders having individual share capital up to Rs 2 lakh held 17.72% stake in the company. 43 shareholders with individual capital above Rs 2 lakh held 84.43 lakh shares  of the firm at the end of September quarter.

Radhe Developers (India) Ltd. is a real estate company. The company operates through the construction segment. It offers residential, commercial, plotting and related projects. The company focuses on projects in Ahmedabad and in near vicinity of Ahmedabad with various projects ranging from residential projects, including flats, bungalows, farmhouses to commercial projects and industrial projects.

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