Penny Stock Under ₹5: Sunshine Capital Soars, Hits Upper Circuit All Week – Multibagger Potential?

Sunshine Capital’s stock price has been rising steadily, hitting the 5% upper circuit on Friday. This marks the sixth day in a row that the stock has seen gains. In just one week, the penny stock has gone up by over 24%.

The recent surge in Sunshine Capital’s stock price follows a series of positive updates from the company, which operates as a non-banking finance company (NBFC).

On Thursday, Sunshine Capital announced its entry into the insurance broking business. The company’s board decided to expand into this sector, aiming to benefit from the expected growth of India’s insurance industry, which is projected to be the fastest-growing among G20 countries. The company believes this move will allow it to offer more tailored insurance solutions to its clients.

Additionally, the board of Sunshine Capital is exploring the option of getting listed on the National Stock Exchange (NSE), subject to regulatory approvals. The company hopes this will increase its visibility, support long-term growth, and improve branding and marketing efforts. Currently, the stock is only listed on the BSE.

Last week, Sunshine Capital also announced that it had approved a funding of ₹196.49 crore and signed a term sheet with Man Stainless Steel Tubes Ltd. This deal will help develop a manufacturing unit for Electric Resistance Welded (ERW) Carbon Steel Pipes in Kathua, Jammu & Kashmir.

Sunshine Capital’s stock price has risen 24.7% in the past week and more than 18% in the past month. As a penny stock, it now has a market capitalization of ₹278.13 crore on the BSE. Earlier this year, on March 7, 2024, the company issued bonus shares at a ratio of 7:1 and split its stock 10:1.

As of 11:50 am, Sunshine Capital’s shares were still locked at the 5% upper circuit, priced at ₹2.67 per share on the BSE.