Rs 4 to Rs 92: This penny stock turned into a multibagger in three years

Stock of Transglobe Foods has delivered stellar returns to investors in the last three years. Transglobe Foods share closed at Rs 3.80 on March 14, 2019 and ended at Rs 92.65 on March 14 this year, translating into gains of 2,338 per cent during the period. In comparison, Sensex gained 48.62 per cent during the period.

An investment of Rs 1 lakh three years ago in the penny stock would have grown to Rs 24.38 lakh today. The stock has fallen after six days of consecutive gain. The share touched an intraday low of Rs 88.25, down 4.75 per cent today.

Transglobe Foods stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 9.15 per cent in 2022 but fallen 52.25 per cent in one year. The share has lost 16 per cent in a month.

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The micro cap stock opened at same level today against the previous close. A total of 25 shares of the firm changed hands, amounting to a turnover of Rs 0.02 lakh on the BSE. Market cap of the firm rose to Rs 1.36 crore on BSE.

 Later, Transglobe Foods stock closed 4.96% lower at Rs 88.05. Market cap of the firm fell to Rs 1.28 crore on BSE.

The minor turnover of the stock on BSE is a big negative and signals that deals by merely 25 shareholders led to a fall of 4.75 per cent in the scrip intraday.

In Q3, 2,430 public shareholders held 1.27 lakh shares amounting to 87.87 per cent stake in the firm. One promoter held 17,571 shares or 12.13 per cent stake in the December quarter. 2,360 public shareholders held 97,729 shares of the firm, amounting to a stake of 67.45 per cent.

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Another big negative for the prospective investors in the stock is dismal quarterly and annual earnings.

Since June 2017 quarter, the firm has not logged any sales.

For the last six quarters, the company has booked losses. On an annual basis, the firm has clocked zero sales in the last four fiscals. The firm has outperformed its peers in terms of market returns in three years.

While shares of Varun Beverages gained 149.48 per cent in three years, Hindustan Foods managed to clock 385 per cent returns for its shareholders. Stock of another peer Tasty Bite Eatables rose merely 33 per cent during the period.

The company is not listed on the NSE. The firm is a food processing company and is engaged in manufacturing and exports of canned vegetables, fruit concentrate and other products. The company, which is based in Baroda, Gujarat, was founded in the year 1986.

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