Blue Chip India’s shares have produced exceptional returns for investors over the last year. Since March 2023, this penny stock has increased by 671 percent, from ₹0.35 to ₹2.7. In the previous 4 years, since March 2020, the stock has skyrocketed 2600% from ₹0.1.
However, the company is only up 10% year-to-date in 2024, despite producing positive returns in two of the three completed months. It fell about 17 percent in March after rising more than 27 percent in February and 4 percent in January.
The stock has risen 451% from its 52-week low of ₹0.49 on April 3, 2023, but is still 24.5 percent below its 52-week high of ₹3.58 on March 5, 2023.
Blue Chip India Limited conducts finance activities in India. It offers stock shares and makes loans. Blue Chip India Limited was established in 1993 and is headquartered in Kolkata, India.
Earnings
Blue Chip India’s net profit for the December quarter was ₹0.02 crore, compared to a loss of ₹0.03 crore in the preceding quarter. Meanwhile, no sales were reported for the quarter ending December 2023 or the prior quarter ended December 2022.
Brokerage view
According to ICICI Direct’s study, Blue Chip India has various characteristics, including excellent yearly EPS growth, which demonstrates sustained profitability over time. Furthermore, the company has showed efficient capital utilisation, resulting in an increase in Return on Capital Employed (RoCE) during the last two years.
Furthermore, Blue Chip India has been effectively leveraging shareholder money, as shown by the improved Return on Equity (ROE) trend observed throughout the same time period. These strengths demonstrate the company’s ability to create profits, optimise capital utilisation, and provide value to its owners.
Meanwhile, its vulnerabilities, according to the brokerage, are:
– Rising other income with low operating income.
– Low revenue and profit.
