Penny Stock Hit 5% Upper Circuit As Revenue Zooms 490% In Q1, PAT Up 103%

SRU Steels is a small-cap operation that conducts business in the commercial services industry. The Company's sole line of business is trading in different kinds of iron and steel. The company currently deals in a variety of steel products and sells them on a commission basis. Shares of SRU Steels Ltd., on Wednesday, soared 5% higher rising to an upper circuit limit of Rs 23.25 a share from its prior closure of Rs 21.15. The stock experienced extremely high demand after posting strong Q1 earnings.

The company reported revenue from operations of Rs 9.16 crore in Q1FY24, which is a rise of 489.76% from Rs 1.55 crore in Q1FY23. The company's total expenses stood at Rs 9.06 Cr in the quarter under review up by 504% YoY from Rs 1.50 Cr recorded in the year-ago quarter. PAT grew by 103.03%, from a net profit of Rs 0.03 crore in the first quarter of FY23 to Rs 0.07 crore in the first quarter of FY24.

Net sales climbed by 11.36% to Rs 16.72 crore in FY23 compared to FY22, while net profit rose by 201.73% to Rs 0.70 crore.
The stock has gone up 35.91% during the past five years, and in the past year, it has produced a multibagger return of 103.86%. The stock has delivered a multibagger return of 104% YTD so far in 2023, and it has produced a multibagger return of 102.62% for the past six months. The stock climbed 15.62% over the course of the previous five trading days.

The stock made a 52-week-high of Rs 30.25 on (10/05/2023) and a 52-week-low of Rs 9.90 on (23/02/2023), indicating at the current market price the stock is trading 23.14% below the 1-year high and 134.84% above the 1 year low.

During Q1FY24, the company reported promoter shareholding of 27.81% and public stake of 72.19%. The stock price of SRU Steels is now trading above its 100-day SMA, and according to Trendlyne data, the company has a Price to Earning Ratio of 38, which is lower than the sector PE ratio of 88.5.