Ace investor Porinju Veliyath bought a stake in this multibagger penny stock, scrip hit 5% upper circuit

With a market valuation of ₹99.86 Cr, Edvenswa Enterprises Ltd. is a small-cap business that operates in the capital goods industry. Edvenswa is a provider of technological solutions with a focus on efficient prototyping for a variety of industries, including banking and finance, healthcare and life sciences, supply chain and logistics, energy, education and the environment, and others.

During its closing on Thursday, the stock hit a 5% upper circuit limit at ₹54.99 apiece level with a total traded volume of 5,820 shares and 100% deliverable volume. This comes after renowned investor Porinju Veliyath bought a stake on Friday. According to the BSE's Bulk Deal data, 1.3 lakh shares were bought at an average price of ₹52.18 taking the stake to 0.72 percent of Porinju Veliyath in Edvenswa Enterprises. Porinju V. Veliyath publicly owns 16 stocks, according to the latest corporate shareholdings declared, with a net value of more than Rs. 124.6 Cr.

Earlier in the 1st week of April, Edvenswa Enterprises announced that its wholly owned subsidiary Edvenswa Tech Inc. in the United States has been awarded a new project in the strategic Robotic Process Automation (RPA) field with a Big Four Consulting Company. 

During the quarter ended December 2022, the company recorded a revenue of ₹0.43 Cr compared to ₹0.19 Cr recorded in the September 2022 quarter. The company said its net profit stood at ₹0.06 Cr as against ₹0.08 Cr and its EPS reached ₹0.06 during Q3FY23 compared to ₹0.09 during Q2FY23. The company is yet to announce its Q4 results.

The shares of Edvenswa Enterprises closed on Thursday at a 5% upper circuit limit at ₹54.99 apiece level on the BSE. In the last 1 year, the stock has generated a multibagger return of 180.85% and on a YTD basis, it has gained 12.06% so far in 2023. The stock has gone up by over 27% during the past five trading sessions, from ₹43.22 to the existing price per share, while it has fallen by 2.91% over the past month. The stock touched a 52-week-high of ₹75.82 on (17/08/2022) and a 52-week-low of ₹19.59 on (16/05/2022). During Q3FY23, the company reported a promoter shareholding of 72.14% and a public stake of 27.86%.

Commenting on the technical outlook of the stock, A R Ramachandran, Co-founder &Trainer - Tips2trades said “Edvensa Enterprises is bullish and now faces strong resistance at 58.7 on the Daily charts. Fundamentals are decent and a daily close above this resistance could lead to target of 73 in the near term."