Avance Technologies hits UC, board approves ₹49.90 cr rights issue
Avance Technologies, a penny stock that has been making waves in the market, has hit a 52-week high, sending its shares soaring to ₹1.83. This gain of 2% has given the company a whopping 252% returns from its 52-week low of ₹0.52. The company’s stock has been on a roll, having hit upper circuits for 28 consecutive days.
The surge in share price is likely due to the company’s decision to issue rights shares to raise capital. The board of directors has approved a rights issue of up to ₹49.90 crore, with Re 1 face value shares. This move is expected to give the company a much-needed boost in its finances, allowing it to invest in new projects and expansion plans.
In its Q1FY26 results, Avance Technologies reported a revenue of ₹37.42 crore, which is a decline of 22.55% quarter-on-quarter (QoQ). However, the company’s net profit recovered to ₹1.62 crore, which is a decline of 26.16% year-on-year (YoY).
Despite the decline in revenue, the company’s net profit recovery is a positive sign, indicating that Avance Technologies is taking steps to improve its financial performance. The company’s management has been working hard to optimize its operations and reduce costs, which has helped to improve its bottom line.
Avance Technologies is a diversified company with interests in various sectors, including technology, healthcare, and education. The company has been focusing on innovation and R&D, investing in cutting-edge technologies to stay ahead of the competition.
The company’s decision to issue rights shares is a strategic move to raise capital and reduce its debt-to-equity ratio. This will help Avance Technologies to improve its financial health and increase its flexibility to take advantage of new opportunities.
Avance Technologies has been a multibagger stock, delivering impressive returns to its investors. The company’s stock has been on a tear, with its share price increasing by over 100% in the past year alone. This is a testament to the company’s strong fundamentals and its ability to deliver consistent growth.
In conclusion, Avance Technologies’ decision to hit the upper circuits and issue rights shares is a positive development for the company and its investors. The company’s focus on innovation, R&D, and cost optimization is expected to pay off in the long run, making it an attractive investment opportunity for investors.
