Share of Gita Renewable Energy has delivered 3,430% returns to its shareholders in one year. The stock, which closed at Rs 5.50 on June 29, 2020 rose to an all-time high of Rs 194.15 on BSE today. An amount of Rs 1 lakh invested in Gita Renewable Energy stock a year ago would have turned into Rs 35.30 lakh today.
In comparison, Sensex has risen merely 38.37% during the period.
Gita Renewable Energy share has gained 2,797.76% since the beginning of this year and climbed 154.29% in one month.
The stock was stuck in upper circuit of 5% on BSE today. At 3: 26 pm, the share was trading 5% higher at Rs 194.15 against previous close of Rs 184.95 on BSE.
The micro cap stock has gained 154.29% in the last 21 days. The stock opened with a gain of 4.97% today and closed at Rs 194.15, higher by 4.97% on BSE.
Gita Renewable Energy share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Total 249 shares changed hands amounting to turnover of Rs 0.48 lakh on BSE.
Promoters held 73.05% stake in the firm and public shareholders owned 26.95% at the end of June quarter.
Only 4,191 public shareholders owned 11.08 lakh shares of the firm signaling that the share was thinly traded on bourses in last quarter.
Of these, 3,947 shareholders held stake with capital up to Rs 2 lakh. Only three shareholders held capital above Rs 2 lakh at the end of June quarter.
The share of the Tamil Nadu-based firm has outperformed its peers in the last one year.
While Ravindra Energy share has risen 121.47%, stock of another competitor GVK Power and Infra has gained merely 27.11% in one year. Urja Global stock has gained 162.13% in one year.
Share of Orient Green Power Company has climbed 63.77% in one year.
However, the phenomenal rise in the stock of Gita Renewable in last one year should not be construed as a basis for inclusion in your portfolio since the rally is not in line with earnings of the firm.
The firm has been incurring losses continuously since quarter ended September 2017 except in the March 2021 quarter when it posted a profit of Rs 15 lakh.
In fact, over the past five years, the firm's historical annual earnings growth has been -63%.
The company reported a 131.91% rise in net profit for March quarter in 2021 when it reported Rs 15 lakh profit against a loss of Rs 47 lakh in March 2020 quarter.
On a quarter-on-quarter basis, net profit rose 101% from Rs 12.97 lakh loss in December quarter of last fiscal.
Gita Renewable Energy is engaged in producing power from renewable resources including wind, solar and hydro. The company was incorporated in 2010 and is based in Gummidipoondi, Tamil Nadu.
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