Penny Stock Below Rs 3 Zooms 16% Intraday Today; Key Reasons Here

On Friday, the shares of GG Engineering opened on the BSE at Rs 2.00 and reached an intraday high level of Rs 2.22 compared to the previous close of Rs 1.90 representing a surge of 16.84% intraday. The buying activity seen in the penny stock after the company recorded outstanding financial results in the quarter ended 30th September 2024.

G G Engineering's net profit increased by 1422.67% to Rs 11.42 crore in the September 2024 quarter compared to Rs 0.75 crore in the September 2023 quarter. In the quarter that ended in September 2024, sales increased 44.33% to Rs 105.71 crore from Rs 73.24 crore in the quarter that ended in September 2023.

Two of the Infra and Energy segment's largest customers contributed around Rs 1,580.46 Lakhs and Rs 2,301.99 Lakhs to the overall revenue for the quarter that ended on June 30, 2024. The Infra & Energy Segment's revenue from one customer accounted for over Rs. 2700.88 lakhs of total revenue for the half-year ending in September 2024. Two significant clients of the Infra and Energy segment contributed around Rs 3,425.47 Lakhs and Rs 2,761.58 Lakhs to the total revenue for the year that ended on March 31, 2024.

For the June 2024 quarter, G G Engineering recorded a net loss of Rs 2.18 crore, whereas for the June 2023 quarter, the company reported a net profit of Rs 0.34 crore. Sales increased 267.97% to Rs 69.73 crore in the June 2024 quarter from Rs 18.95 crore in the same period last year.

13,500,000 equity shares with a face value of Rs. 1 each were issued to the corporation, which on May 3, 2024, received a sum of Rs. 13.3650 crores. This was accomplished by converting an equivalent number of warrants at a rate of Rs. 0.99 paisa per warrant, or 75% of the issue price each warrant, upon receiving the remaining sum. On May 23, 2024, the company issued 5,00,00,000 equity shares having a face value of Rs. 1 in order to raise Rs. 4.95 crores. After the warrant holders' remaining payment was received, these shares were exchanged into an equal number of warrants at a rate of Rs. 0.99 Paisa per warrant.

G G Engineering Limited was founded in 2006 and specialises in engineering goods and high-quality structural and infrastructure steel. With a market valuation of Rs 301.05 Cr, G G Engineering's shares were trading 20% higher at Rs 1.90 a share during Thursday's pre-opening session.