Penny stocks often capture the attention of investors due to their potential for significant returns, and OK Play India is no exception. On October 8, shares of OK Play India surged by 5%, hitting their upper circuit limit of ₹13.59 during intra-day trading. This increase was primarily driven by news of a substantial stake increase by the company’s promoter, which has positively influenced investor sentiment.
In a formal exchange filing, OK Play India announced the board’s approval for the allotment of 1 crore equity shares to promoter Anandana Handa. This strategic decision comes after a special resolution was approved by the members at the Extra Ordinary General Meeting (EGM) on March 25, 2023, and with the necessary clearance from BSE Limited on March 31, 2023. The shares will be allotted on a preferential basis at a price of ₹6.021 each, which includes a premium of ₹5.021 per share, adhering to SEBI regulations.
Anandana Handa has showcased her commitment to the company by already paying ₹4.5 crore, which represents 75% of the total amount due for the shares. This move is seen not only as a financial investment but also as a strong signal of confidence in the company’s future prospects.
Additionally, OK Play India has implemented a stock split effective March 11, 2024, which transformed each equity share with a nominal value of ₹10 into ten equity shares with a nominal value of ₹1 each. This strategic restructuring aims to enhance liquidity and attract a broader base of investors, thereby adjusting both the price and the number of shares and warrants in circulation.
The company’s financial health appears robust, as indicated by a remarkable net profit growth of 140% year-on-year in Q1 FY 2024-25. In this quarter, OK Play India reported a net profit of ₹0.87 crore, a significant increase from ₹0.36 crore during the same quarter the previous year. Such growth not only highlights the company’s operational efficiency but also its ability to adapt and thrive in a competitive market.
Stock Price Trend and Market Performance
Despite an overall increase of nearly 11% over the past year, OK Play India’s stock has faced challenges in 2024, showing a year-to-date (YTD) decline of 20%. Following a drop of over 12% in September, the stock saw an additional decrease of 1.5% in October. However, it’s important to note that the stock had previously recorded gains for two consecutive months, climbing by 6.8% in August and 13.4% in July. The stock remained flat in June and had notable setbacks in the months prior: down 1.5% in May, 6% in April, and 27% in March. Conversely, the year began positively, with gains of 12% in February and 1.5% in January.
Despite the recent fluctuations, the stock is approximately 37% below its 52-week high of ₹21.50, achieved in February 2024. On a more positive note, it has gained 36% from its 52-week low of ₹10 recorded in October of the previous year, indicating a potential upward trend as investor confidence builds.
Long-Term Performance and Outlook
In the long term, OK Play India has achieved impressive multibagger returns, soaring nearly 450% from ₹2.5 in October 2019. Over the past three years, the stock has rallied by over 327%, starting from ₹3.18 in October 2021. This remarkable performance in the penny stock segment suggests a steady growth trajectory and positions OK Play India as a noteworthy investment opportunity for those looking at branding and potential returns in the market.
