This penny stock turned into a multibagger in one year: Gopala Polyplast Ltd Share price

An amount of Rs 1 lakh invested in the microcap stock a year ago would have turned into Rs 23.08 lakh today
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Gopala Polyplast stock, which closed at Rs 4.88 on August 5, 2020 ended at Rs 112.65 today, amounting 2,208% returns to its shareholders in one year.

Share of Gopala Polyplast has delivered 2,208% returns to its shareholders in one year. The stock, which closed at Rs 4.88 on August 5, 2020 ended at Rs 112.65 on BSE today. An amount of Rs 1 lakh invested in Gopala Polyplast stock a year ago would have became Rs 23.08 lakh today.

In comparison, Sensex has risen merely 44.68% during the amount . Gopala Polyplast share has gained 1,688% since the start of this year and climbed 151.17% in one month.

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The stock hit a fresh 52-week high today, rising 5% to Rs 112.65 on BSE today.

The share has gained 27.5% within the last 5 days. The stock opened with a gain of 4.99% and closed at an equivalent level. it had been stuck in upper circuit of fifty throughout the session.

Gopala Polyplast share stands above 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Total 100 shares changed hands amounting to turnover of Rs 0.11 lakh on BSE.Market cap of the firm surged to Rs 115 crore.

Rs 5 to Rs 194: This over the counter stock became a multibagger in one year

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Promoters held 92.83% stake within the firm and public shareholders owned 7.17% at the top of June quarter. Bank of Baroda was the most important shareholder within the firm with 5% stake or 5.12 lakh shares. there have been merely 3,682 shareholders with 1,38,833 shares who held individual capital up to Rs 2 lakh.

Three foreign portfolio investors held 23,369 shares at the top of June quarter.

Only 1 open-end fund held 6 shares of the firm in Q1.

Multibagger alert: This stock gave 1,285% returns in one year

In terms of financials, the firm reported a 491.32% rise in March quarter net income at Rs 17.14 crore against loss of Rs 4.38 crore within the corresponding period of previous fiscal. However, net income fell 65.33% from Rs 49.44 crore on 1 / 4 on quarter basis.

On an annual basis, net income rose 407% to Rs 63.62 crore for the fiscal ended March 2021 against Rs 20.70 crore loss for the fiscal ended March 2020.

Sales also zoomed 182% to Rs 15.87 crore in last fiscal against Rs 5.62 crore sales for the fiscal ended March 2020. 

However, investors should consider the massive promoter holding within the company which indicates the illiquidity of the shares available for purchase on the bourses.This may be one among the explanations behind the meteoric rise within the stock since same set of shares might be traded multiple times to lift the stock price.

This stock turned Rs 1 lakh into Rs 10 lakh in one year, did you miss the rally?

Ivestors should also approach the stock with caution since the firm has remained in news for wrong reasons last year.

In December 2020, CBI booked Gopala Polyplast just in case of a bank fraud worth Rs 72.55 crore.

The central agency registered a case against Gopala Polyplast on the idea of a complaint from Bank of Baroda alleging that accused directors of the firm-Manish Somani and Manoj Somani and Kishorilal Sonthalia-cheated the bank to the tune of Rs 72.55 crore between 2017 and 2019.

"It was alleged that in the amount from 2017 to 2019, the corporate availed various credit facilities which were enhanced and reviewed by the bank. it had been further alleged that the continual overdraft within the account and devolvement of LCs (letters of credit) resulted within the account becoming NPA (non-performing asset)," CBI spokesperson RK Gaur said.

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