Penny Stock Surges to Upper Circuit After Q1 Profit Jumps 46% YoY

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Shares of Spright Agro, a small-cap company trading under ₹5, hit the upper circuit on the Bombay Stock Exchange after the company reported a strong first-quarter performance, with net profit soaring 46 percent year-on-year.

For the quarter ended June 30, 2025, Spright Agro posted a net profit of ₹62.16 crore, up sharply from ₹3.13 crore in the previous quarter. The significant increase marks a nearly 19-fold sequential jump and highlights robust year-on-year growth. The announcement triggered a rally in the stock, with no sellers available as it hit the circuit limit.

The Ahmedabad-based firm, which focuses on contract farming and greenhouse technology, had recently been trading near its 52-week low of ₹2.07 before the results were declared. Following the earnings release, the stock drew strong buying interest, with its market capitalization reaching approximately ₹240 crore.

In its earnings statement, the company attributed its financial improvement to enhanced operational efficiency and stronger performance across its agricultural business segments. Management emphasized that the quarterly results reflect the company’s ongoing commitment to innovation and sustainable growth in the agri-food sector.

Last year, in June 2024, Spright Agro successfully raised ₹44.87 crore through a rights issue, priced at ₹13.40 per share, on a 1:15 ratio basis. The issue was oversubscribed by 1.16 times, indicating investor confidence. Proceeds from the issue were allocated toward working capital requirements, general corporate purposes, and issue-related expenses.

The recent surge in profit and market reaction has brought renewed investor focus on the company. However, market experts caution that penny stocks like Spright Agro can be highly volatile and are often subject to rapid price fluctuations due to low liquidity and market sentiment.

Despite the risks, the company’s solid quarterly numbers and its core strength in greenhouse infrastructure and contract farming have positioned it as one to watch. Continued focus on maintaining profitability and efficient capital use will be key factors in its long-term performance.