Penny stock Pulsar International has seen a remarkable surge in its value, delivering exponential returns to investors over the past five years. The stock has skyrocketed by 13,200 percent, climbing from ₹0.10 in July 2019 to ₹13.3 currently. In the last three years alone, it has surged by an impressive 8,212 percent, rising from ₹0.16 in July 2021 to its current levels.
This exceptional growth showcases the company’s strong performance and market confidence, making it a standout in the stock market. Early investors who recognized its potential have reaped significant rewards, highlighting the stock’s impressive turnaround and upward trajectory. The extraordinary gains reflect its past success and underline its potential as a high-return investment opportunity for the future.
Pulsar International has continued to demonstrate strong performance in recent times, with a rise of over 43 percent in the past year and over 67 percent year-to-date in 2024. While the stock has seen positive returns in five out of the seven months so far this year, it experienced a slight decline of over 5 percent in July, following four consecutive months of gains since March. Despite this, it showed significant growth in June, May, and April, with a slight dip in February but a notable increase in January 2024.
Furthermore, the stock is currently almost 8 percent away from its record high of ₹14.4, reached in June 2024. It has also demonstrated strong resilience by surging over 119 percent from its 52-week low of ₹6.08, which was recorded in November 2023.
Pulsar International Limited is engaged in buying, selling, and dealing in industrial and consumer goods, as well as materials and commodities in India. The company deals in chemicals, pesticides, petrochemicals, and pharmaceutical products, and was incorporated in 1990 in Ahmedabad, India.
In terms of earnings, in the March quarter (Q4FY24), Pulsar reported a standalone net profit of ₹76 lakh, marking a significant improvement from a loss of ₹15.5 lakh in the same period last year. The company’s revenue for the quarter stood at ₹899 lakh, a decrease of over 54 percent from the previous year, while total expenses also fell compared to the previous year.
For the fiscal year 2023-24, the company achieved a consolidated net profit of ₹180 lakh, a substantial increase from ₹13.19 lakh in the previous financial year. Revenue for FY24 surged to ₹1,978 lakh, showing a significant growth compared to the previous year.
According to domestic brokerage house ICICI Direct, Pulsar International exhibits strong momentum, with the stock price remaining above short, medium, and long-term moving averages. The company has shown robust annual EPS growth and has effectively utilized its capital to generate profit, as evidenced by an improving Return on Capital Employed (RoCE) over the past two years.
However, there are some weaknesses highlighted by ICICI Direct, including a decrease in promoter holding by more than -2 percent QoQ and declining net cash flow, indicating that the company is not able to generate net cash.
Investing in penny stocks like Pulsar International can offer the potential for substantial returns due to their lower price points, but it also comes with significant risks. These stocks often face liquidity issues and may be subject to less stringent financial reporting requirements, increasing the risk of market manipulation and fraudulent activities, leading to heightened volatility and elevated risks for investors.
To effectively navigate these challenges, thorough research and robust risk management strategies are essential. By taking these precautions, investors can better handle the uncertainties associated with penny stocks and protect against potential losses.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.