Multibagger penny stock is in uptrend and it may go up to ₹115 apiece levels in near term, believe stock market experts.Multibagger stock: In the year 2021, a good number of shares doubled shareholders’ money. Most of these multibagger stocks in 2021 had given sharp upside movement in the post-second wave of Covid-19 pandemic. Lagnam Spintex shares are a late entrant in the list of multibagger stocks as they surged from 47.20 (close price on 30th November 2021 on NSE) to ₹94.45 on NSE, doubling shareholders’ money in this near 2 months time. However, stock market experts are still bullish on this textile stock as Lagnam Spintex shares look positive from a fundamental and technical perspective.According to stock market experts, the cotton yarn market company has recently announced its expansion plans with planned expenditure of ₹218 crore. Apart from this, the company has announced top line growth of ₹300 crore that fueled the penny stock to become a multibagger penny stock. It has recently given breakout at ₹90 apiece levels and it may go up to ₹115 levels in one month, believe stock experts.
Speaking on the reason for Lagnam Spintex share price rally; Anuj Gupta, Vice President at IIFL Securities said, “The textile stock has been in uptrend and has recently given breakout at ₹90 per shares, which was a major hurdle for the stock. It may continue to scale further as the company has recently announced ₹300 crore topline growth. The cotton yarn maker company has also announced to expand pumping ₹218 crore. So, it may soon hit triple digit figures.”

Suggesting stock market investors to buy this low liquid multibagger penny stock; Sumeet Bagadia, Executive Director at Choice Broking said, “The stock is looking positive on chart pattern and one can add this stock in one’s portfolio at current market price for short term target of ₹110 to ₹115 maintaining stop loss at ₹88 apiece levels.”

Lagnam Spintex, a leading manufacturer of high quality cotton yarns in India, has recently announced its plan of capital expenditure of about ₹218 crore towards the expansion of a project of 41,472 spindles of 100 percent cotton compact yarn.

The company expects an additional topline growth of approximately ₹300 crore annually, after the installation of the additional capacity in next two fiscal years starting from 1st April 2024.

After the successful completion of the proposed project at the existing facility, the production capacity of the company will rise from 35 tons per day to 70 tons per day, the capex will almost double the company’s product capacity and add a new product of compact yarn, which is seeing lot of demand in Domestic as well as Export market.

The proposed 218 crore capex will be funded in 3:1 ratio by debt and internal accruals and the company will raise loans of about ₹164 crore (75%), with a funding of ₹54 crore (25%) from internal sources.

Lagnam Spintex reported a 107% rise in the net profit to ₹9.4 crore for the quarter ended December 31, 2021 as against a net profit of ₹4.54 crore in the same period in previous fiscal. Its top line grew 45 per cent to ₹90.95 crore in the Q3 FY22 from ₹62.7 crore in the year ago period. EBITDA stood at ₹17.87 crore in December 2021 up 76 per cent from ₹10.16 crore in December 2020.