Multibagger stocks: Several promising stocks surface in the share market from time to time. Such stocks sometimes go multibagger, breaking their estimated ceiling and bringing huge returns to their investors. One such stock is Deep Diamond, which has brought back over 1000 percent returns to its investors. Moreover, the small-cap multibagger stock hit upper circuit for a consecutive fifth session.
On Wednesday (January 25), the stock was locked in the upper circuit of 5 percent with its share price at Rs 18.45. One Friday (January 27), the stock climbed again amid a tumbling market to close at Rs 19.35.
The multibagger stock was recently split by the company in a 10:1 ratio. Before this, the stock had a face value of Rs 10. The face value of Deep Diamond stood at Rs 1 after the split by the company.
The company recently informed, via an exchange filing, that it has received approval from its board to invest the surplus money with the company, Zee Business reported. This is the money that it does not immediately need for the businesses. The money can be used to purchase or subscribe for shares and securities of other companies.
The company has reportedly set its sights on new age businesses like Electric Vehicles (EVs), green energy like wind and solar, and waste management among others. The company pointed out that the EV sector has high growth prospects given the recent impetus provided by the central government.
Alteration in the Memorandum of Association object clause has been approved by the Deep Diamonds board, it was further reported. The company has reported an increase of a huge 233.33 percent in sales in the December quarter, taking it to Rs 1.5 crore. The net profit rose by a massive 6,000 percent, from Rs 0.01 crore to Rs 0.61 crore compared to the same quarter in the last fiscal year.
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