Watch this penny stock: Price close to Re 1, light on debt; concluded big deal
Low price, low liquidity and high volatility are some of the features of penny stocks. However, carefully chosen with strict due diligence could lead an investor to high returns. Spright Agro has secured a long term contract that will work to its advantage.
Kolkata: Think of a stock that is trading at close to Re 1 in the secondary market. Spice it up with negligible debt. Now think this company has secured a deal of Rs 283.77 crore with another company Nadir Traders. If that sounds a tempting recipe to you, please read on to find out more about Spright Agro, which is an agri company.
This Ahmedabad-based agriculture company recently signed a major deal with a firm for the supply of special seeds. What are the details of this agreement and how cna it help the company in future. It is worthwhile to find out the details.
Sprite Agro operates in the agro-commodity sector. It focuses on supply and trading of different types of agro products. In Q1 (April-June period) of FY26, the revenue of the company stood at Rs 62.03 crore, and profit after tax was Rs 9.15 crore. An interesting point is Sprite Agro is almost free from debt which reduces its financial expenses.
Agreement for seeds
The shares of this agriculture company could be in for some upward movement. For the penny stock, this activity is the outcome of a significant deal that is worth Rs 283.77 crore. The company disclosed that it has been able to secure an annual supply agreement of seeds from Nadir Traders Private Ltd for the current financial year. It is expected that the long-term contract will help the company in increasing its revenue. This can also have a positive impact on the shares of the company.
Oilseed commodities
This agreement is a fixed rate contract for supply of oilseed commodities and the average value of each of the consignments will be about Rs 56.75 crore. But what is involved in this contract are crops that have a seasonal characteristic. Therefore, a quantity variation of up to 5% is allowed in each consignment under this deal. The company is supposed to supply natural soybean oil seeds, Malkangani oil seeds, flax seeds, black sunflower oil seeds and white hulled sunflower seeds.
On the morning of Tuesday, October 14, Spright Agro share was quoting at Rs 1.01, up Re 0.04 (or 4.12%). The price is close to the 52-week low of the scrip. he 52-week high and the 52-week low of the stock is Rs 16.79 and Re 0.96 respectively. Over the past five years, it has delivered 492% in 5 years.
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