₹100 small-cap stock: Starlineps Enterprises share price hits upper circuit

Shares of small-cap stock Starlineps Enterprises hit the 5 per cent upper circuit limit, reaching ₹103.30 on Tuesday, September 3, 2024, following the company’s announcement of a strategic investment of ₹20 lakh in Tulua Foods Private Limited. This investment values Tulua Foods at ₹20 crore and marks a significant step in Starlineps Enterprises’ expansion strategy.

This move is part of Starlineps Enterprises’ broader strategy to diversify its portfolio and tap into high-growth sectors. Recent investments include stakes in CUR8 Ventures and LiaPlus AI. CUR8 Ventures is a prominent player in AI Defence solutions, while LiaPlus AI specializes in multilingual AI technology. 

Last month, on August 8, 2024, Starlineps Enterprises announced a stock split of its equity shares, reducing the face value from ₹5 each to Re 1. This move aims to enhance share liquidity and make it more accessible to small investors. Additionally, the company approved a proposal to issue bonus equity shares to its shareholders at a ratio of 1:5.

Stock Price Trend

Following today's rally, the small-cap stock is now 44 per cent away from its peak of ₹185.80, which hit last month. Meanwhile, it has advanced 24 per cent from its 52-week low of ₹83.30, recorded in March 2024.

The scrip has lost almost 6 per cent in the last year and over 17 per cent in 2024 YTD, giving negative returns in 5 of the 8 months. It shed the most in August, down 24.5 per cent after an over 15 per cent fall in March. Meanwhile, it jumped the most in April, up 25 per cent, followed by an over 16 per cent gain in June.

The Strategic Investment

The ₹20 lakh capital infusion into Tulua Foods is expected to accelerate its growth by enhancing its production capacity and facilitating its entry into new markets.

Tulua Foods is known for its authentic Indian spices supplied in bulk to the B2B segment. It is gaining recognition among top chefs for its customized blends. This investment will bolster Tulua Foods’ operational capabilities and position Starlineps Enterprises to capitalize on the rising demand for high-quality spices both domestically and internationally.

This strategic investment aligns with Starlineps Enterprises' broader goal of creating sustainable shareholder value. The company’s recent financial performance reflects its growth trajectory, with annual revenue increasing by 48.2% and net profit soaring by 192.5 per cent. Additionally, Starlineps Enterprises recently secured a major order worth ₹379.62 million, further strengthening its financial standing.

In conclusion, Starlineps Enterprises’ recent investment in Tulua Foods highlights its strategic focus on innovation and market expansion. By aligning with promising startups and exploring high-growth sectors, Starlineps Enterprises is poised for continued success and sustainable value creation for its shareholders.