Ashapuri Gold Ornament Ltd, is a penny stock traded in the gold sector. This gems and jewellery stock trading below Rs 10, has touched back-to-back 5% upper circuits. On Wednesday, November 13, the stock price even crossed above Rs 9 mark. Due to a 2-consecutive days winning streak, Ashapuri Gold stock has given over 10% returns to investors despite a bear market this week so far. The reason for the strong rally in this penny stock is Tata Group-backed gems and jewellery giant Titan Company which is the leader in the sector.
Ashapuri Gold Ornament Ltd Share Price:
After hitting a 5% upper circuit of Rs 9.04 apiece on November 13, the penny stock closed at Rs 8.97 apiece up by 4.18% on BSE. Its market cap stood at Rs 298.98 crore. In the previous session, the stock had touched 5% upper circuit to Rs 8.61 apiece.
Ashapuri stocks are rallying after three consecutive days of decline from November 7th to November 11th. In these three days, the stock was down by 9.6% from the November 6th level of Rs 9.07 apiece. That being said, Ashapuri stock has recovered its losses of 3 days in a span of two days from November 12-13. YTD, though the stock is down by 15% still.
The stock's 52-week high and low is at Rs 16.27 apiece and Rs 16.27 apiece respectively. The stock's price-to-equity ratio is at 26.48x, and return on equity is at 7.93%.
The reason?
Ashapuri entered into a bullish trend after on November 11th it announced an agreement with Titan Company, the giant of the gems & jewellery sector. The deal is for the supply of gold jewellery during the term as per the purchase order raised by Titan during the term.
All orders from August 1, 2024, to July 31, 2026, will be covered under this contract. In its filing, Ashapuri said, "This is a Contract for Supply of Gold Jewellery as per the orders placed by the Titan during the term of Contract. Hence, there is no exclusive amount mentioned in the Contract."
The deal is seen as positive for investors buying Ashapuri stock.
Ashapuri Gold Ornament Ltd Corporate Actions:
The company has not carried any bonus issues or dividend rewards. However, in July last year, the stock split by 1:10 ratio, where face value of Rs 10 each was trimmed to Rs 1 each. The ex-split date was on July 18, 2023.
About Ashapuri Gold Ornament Ltd:
Ashapuri Gold Ornament Ltd. is recognised as one of the prominent manufacturers and wholesalers of gold jewellery. It's been 25 years of this remarkable journey serving jewellers from metro cities to even many parts of urban locations and unrivalled quality of the jewellery that is a promise.
The company has manufacturing expertise, a large inventory of designs & high quality of service has made it possible to be in the league of top jewellery suppliers. It is committed to providing customers with the best buying experience of every Indian & international jeweller. Also, its exquisite collection is spread across Indian markets. The company further welcomes Indian & international jewellers to be a part of India's biggest B2B jewellery hub.
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