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BofA’s Stake Purchase Triggers Strong Rise in Oriental Carbon Stock.
Market News - June 12, 2025

BofA’s Stake Purchase Triggers Strong Rise in Oriental Carbon Stock.

BofA’s Stake Purchase Triggers Strong Rise in Oriental Carbon Stock.

The stock of Oriental Carbon & Chemicals Ltd (OCCL) posted significant gains following Bank of America’s recent equity purchase. This move attracted strong investor attention, mainly because Oriental Carbon’s market value stands at just ₹300 crore.

The announcement quickly caught the attention of investors, leading to a sharp rally in the company’s shares. Oriental Carbon’s stock price jumped around 9% in the early trading hours following the disclosure, with the price later reaching even higher levels in the subsequent sessions.

Bank of America’s Investment Triggers Market Excitement

Bank of America recently picked up 53,428 shares of Oriental Carbon & Chemicals through a block trade. The shares were bought at an average price of ₹289.53 per share, translating to a total investment of approximately ₹1.5 crore. While this may appear to be a small investment for a financial giant like Bank of America, the entry of such a reputed global institution into a microcap company has greatly enhanced market confidence.

Microcap companies like Oriental Carbon often have limited participation from institutional investors, which can sometimes keep them under the radar. However, this strategic investment has put the company in the spotlight, attracting both retail and institutional interest.

Strong Stock Rally and Volume Spike

Soon after the news broke, the stock witnessed a substantial increase in both price and trading volumes. Oriental Carbon’s share price surged by nearly 9% on the announcement day, hitting intraday highs of around ₹329 on the Bombay Stock Exchange (BSE). The rally was supported by a noticeable jump in trading volumes, indicating fresh investor interest.

Technically, the stock’s breakout above its 50-day and 200-day moving averages signals short-term strength. The company’s beta stands near 0.9, indicating it usually experiences smaller price movements compared to the broader market. However, the recent surge demonstrates that microcap stocks can experience sharp movements when backed by positive news.

Company Profile and Core Business

Oriental Carbon & Chemicals Ltd specializes in the production of insoluble sulphur, which plays a crucial role in tyre and rubber manufacturing. Insoluble sulphur is a key chemical that helps improve tyre durability and performance. The company supplies this essential product to major tyre manufacturers across India and several international markets.

Along with insoluble sulphur, OCCL also offers other rubber chemicals that are widely used in industrial applications. Over the years, the company has built strong customer relationships and has steadily grown its footprint in both domestic and export markets.

Financial Performance and Current Challenges

Despite the stock rally, Oriental Carbon’s financial results for the most recent quarter showed signs of weakness. For Q4 FY25, the company reported a sharp drop in revenue, which came in at approximately ₹29 crore, a significant decline from the ₹90 crore posted in the same quarter last year. Furthermore, the firm’s net earnings shrank drastically to ₹0.9 lakh, down from ₹14 crore in the same quarter of the previous year.

This decline in performance was largely driven by reduced demand from the tyre industry, cost pressures, and inventory adjustments. Rising input costs and sluggish demand trends weighed on the company’s margins. However, Oriental Carbon continues to maintain a stable balance sheet with low debt, which provides some financial flexibility to navigate the current business environment.

Why Bank of America’s Stake Matters

Even though the stake acquired by Bank of America is small, its involvement is significant for a company like Oriental Carbon. Institutional investments from globally recognized firms like BofA tend to attract attention and can act as a catalyst for re-rating the stock. The deal has boosted investor sentiment and may encourage further participation from other financial institutions and fund managers.

Additionally, such institutional entry often improves stock liquidity and can result in more analyst coverage, further increasing the company’s visibility in the market.

Investor Outlook: Opportunities and Risks

For short-term investors and traders, the current technical setup, supported by higher volumes, presents potential trading opportunities. The stock’s positive momentum could continue in the near term, especially if the market perceives further institutional interest.

Long-term investors, however, need to closely monitor the company’s financial recovery. Although Bank of America’s investment has lifted sentiment, the company’s earnings and revenue must show improvement in the coming quarters for sustained growth. Weak financial fundamentals could limit further upside if not addressed.

Additionally, the stock remains exposed to risks tied to fluctuations in the tyre and rubber industries, as well as raw material price movements. Any delays in demand recovery or challenges in controlling input costs could impact profitability going forward.

Conclusion

The recent investment by Bank of America in Oriental Carbon & Chemicals has brought the microcap stock into sharp focus. The market responded enthusiastically, resulting in a notable price rally backed by strong trading volumes. While this development highlights renewed investor interest, the company’s financial performance remains an area to watch.

Sustained investor confidence will depend on Oriental Carbon’s ability to improve its earnings and maintain growth momentum in a competitive market. For now, the company enjoys the benefits of improved market visibility and increased liquidity, thanks to Bank of America’s timely investment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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HEC Infra Projects Registers Exceptional Q4FY25 Growth, Stock Hits Upper Circuit

HEC Infra Projects Registers Exceptional Q4FY25 Growth, Stock Hits Upper Circuit

 

HEC Infra Projects Ltd, a micro-cap company in India’s infrastructure sector, has demonstrated remarkable financial progress in the fourth quarter of fiscal year 2025. The firm reported an extraordinary surge in net profit alongside a substantial increase in revenue, which propelled its shares to hit the 5% upper circuit in market trading.

Impressive Quarterly Financial Performance

During Q4FY25, HEC Infra’s revenue jumped sharply to ₹46.5 crore, marking a 65% rise compared to ₹28.2 crore in the same period last year. This growth also showed a strong sequential uptick from ₹27.5 crore in the previous quarter.
The company’s net profit witnessed an outstanding increase, soaring to ₹5.67 crore from just ₹0.26 crore a year earlier, reflecting more than a twentyfold improvement. Sequentially, net earnings nearly tripled from ₹1.91 crore in Q3FY25, demonstrating improved profitability and operational effectiveness.
Moreover, earnings before interest, depreciation, and amortization (EBITDA) rose by an impressive 400% year-on-year, reaching ₹8.93 crore. This highlights efficient cost control measures and improved margins.

Company Profile and Core Business

HEC Infra Projects specializes in turnkey EPC (engineering, procurement, and construction) solutions, with a focus on electrification infrastructure. Its key offerings include overhead transmission lines, substations, underground cable laying, switchyard construction, and water pumping projects.
Expanding beyond conventional infrastructure, the company has also ventured into renewable energy sectors, notably solar power installations, battery energy storage systems, and solar microgrids. This strategic diversification aligns with the Indian government’s push towards sustainable and clean energy solutions.
HEC Infra holds significant accreditations such as Class A EPC contractor status by Gujarat’s Roads and Buildings Department and Class-1 registration with the Central Public Works Department. These certifications position the firm well to bid for and execute government infrastructure contracts.

Stock Market Response

Following the strong quarterly results, HEC Infra’s share price surged by 5%, reaching the upper circuit limit at ₹126.01. This significant increase reflects the positive market sentiment and investor optimism regarding the company’s growth trajectory.
In the last 30 days, the stock outperformed many peers with a return of over 13%, underlining the growing interest in micro-cap infrastructure firms amid India’s infrastructure development momentum.

Growth Catalysts

Several factors have contributed to HEC Infra’s excellent performance:
• Increased Infrastructure Spending: The Indian government’s ongoing infrastructure initiatives, especially rural electrification and grid modernization programs, have expanded opportunities for companies like HEC Infra.
• Renewable Energy Expansion: The company’s foray into solar energy and energy storage projects positions it advantageously in a high-growth sector aligned with national renewable energy targets.
• Operational Excellence: Effective cost management and streamlined project execution have helped convert revenue growth into robust profitability gains.

Challenges and Risks

Despite the promising outlook, HEC Infra must navigate inherent risks associated with infrastructure contracting. Micro-cap companies often face liquidity constraints and market volatility, which can impact share price stability.
Additionally, project execution risks, including regulatory delays, supply chain interruptions, and labor issues, can affect timelines and profitability. The company’s ability to sustain growth depends on managing these risks while expanding its order book.

Future Prospects

Looking ahead, HEC Infra Projects is well-positioned to capitalize on India’s infrastructure and renewable energy growth story. Government emphasis on electrification, grid upgrades, and clean energy transitions will likely drive continued demand for its services.
By leveraging its credentials and expanding expertise in renewables, the company can strengthen its market position and improve long-term revenue visibility.
Maintaining operational efficiency and delivering projects on time will be crucial for sustaining profitability and investor confidence in the competitive infrastructure sector.

 

 

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EV Stock Delivers Over 570% Profit Surge as Revenues Soar in Q4 FY25

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Undervalued Microcaps Quietly Gaining Ground and Profits
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Undervalued Microcaps Quietly Gaining Ground and Profits

Undervalued Microcaps Quietly Gaining Ground and Profits

Jyoti Resins and Swastika Investmart Shine Silently

In India’s vast and diverse equity landscape, microcap stocks are frequently dismissed or overlooked due to their relatively small size and lack of media coverage. However, some of these lesser-known companies are quietly delivering strong financial performances, outperforming expectations and gradually earning a reputation among savvy investors. Two overlooked contenders—Jyoti Resins & Adhesives Ltd. and Swastika Investmart Ltd.—are quietly establishing a strong track record of profitability while staying under the radar.

Jyoti Resins: A Strong Adhesive in Earnings Stability

Jyoti Resins & Adhesives Ltd., the driving force behind the renowned “Euro” adhesive brand, has solidified its standing in the microcap sector. Despite its relatively small market presence, the company has been delivering consistent growth.

The company’s revenue growth also remained healthy, with a 10.35% increase in net sales, reaching ₹78.61 crore, a notable rise from ₹71.23 crore in the prior year. Such figures are not common in the microcap universe, making Jyoti Resins a standout performer in its segment.

Over the course of the full financial year, the company’s performance remained resilient. The firm also maintained a strong operating profit margin (OPM) of 30.73%, reflecting operational efficiency and pricing power in a competitive market.

The company’s ability to maintain healthy margins and double-digit growth in both revenue and net profit, even amid fluctuating market conditions, speaks volumes about its operational discipline and the resilience of its product demand.

Swastika Investmart: Financial Services Flying Under the Radar

With offerings in stockbroking, investment advisory, and wealth management, Swastika has been expanding its footprint steadily in India’s growing financial market.

The company’s performance in recent quarters has been equally impressive. For the financial year 2024–25, Swastika Investmart clocked in over ₹30 crore in net profits representing a significant jump compared to the previous year. Its revenue also saw robust growth, driven by increased client acquisition and higher market participation.

Swastika’s approach centers on catering to Tier 2 and Tier 3 cities—markets often underserved by larger players. This strategy has helped the firm scale without needing to aggressively compete in oversaturated metro markets. The company’s digital transformation initiatives and tech-enabled platforms have further enhanced client experience, leading to stronger retention and increased transaction volumes.

Beyond brokerage services, Swastika’s expansion into wealth advisory and portfolio management services is paying off, as more retail and HNI clients seek tailored financial solutions. The company’s prudent cost management and steady rise in client assets under management (AUM) have contributed to a strong bottom line, earning it recognition among long-term investors who value fundamentals over hype.

What Makes These Microcaps Unique?

While many microcap companies struggle with volatility and inconsistent earnings, both Jyoti Resins and Swastika Investmart have demonstrated stable growth, disciplined financial management, and clear business strategies. Their profits are not the result of one-off windfalls but rather reflect sustainable business models and strong customer relationships.

Investors often view microcaps as speculative or risky bets. However, these two companies break that mold. Jyoti Resins excels in the specialized yet vital domain of industrial adhesives, while Swastika Investmart leverages India’s surging financial inclusion movement.

Moreover, their focus on scalability without sacrificing profitability sets them apart. Both firms have maintained healthy margins while growing top-line revenue—a combination that can deliver significant shareholder value in the long run.

Conclusion:

In a market flooded with noise and hype, it’s easy to overlook quiet performers. Yet, companies like Jyoti Resins & Adhesives and Swastika Investmart prove that sustained profitability and smart business strategy can emerge even from the smallest corners of the stock market.

Summary:

Jyoti Resins and Swastika Investmart are two microcap companies delivering impressive profits through smart business models and efficient operations. Their consistent growth and disciplined strategies make them under-the-radar gems in India’s stock market

 

 

 

 

 

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Standard Capital Markets Raises ₹50 Crore Via NCDs

 Standard Capital Markets Raises ₹50 Crore Via NCDs

 

The micro-cap NBFC, trading below Re 1, draws market attention after securing ₹50 crore through privately placed secured non-convertible debentures.

Summary:

Standard Capital Markets, a non-banking financial company (NBFC) with a stock price under Re 1, has approved the allotment of 5,000 secured non-convertible debentures (NCDs) worth ₹50 crore. This strategic decision is intended to strengthen the company’s capital foundation and improve its ability to lend.Despite its micro-cap status and inherent risks, the issuance has sparked investor interest in the penny stock.

Standard Capital Markets: A Small Stock’s Bold Move in Fundraising

In a bold move that has captured the interest of retail and speculative investors alike, Standard Capital Markets Ltd, a little-known NBFC trading below Re 1, has raised ₹50 crore through the issuance of secured non-convertible debentures (NCDs). In a recent filing with regulators, the board of directors announced the allocation of 5,000 unrated and unlisted secured non-convertible debentures (NCDs), each having a face value of ₹1,00,000 and issued at par.
This development sharply focuses on this micro-cap NBFC, with many now questioning whether it could signal a larger transformation, improved operational performance, or simply a short-term financial restructuring move.

Details of the NCD Issuance

The company clarified that the NCDs were issued on a private placement basis, targeting institutional and high-net-worth investors rather than retail subscribers. These NCDs are:
Not rated and not publicly listed, suggesting that credit rating agencies have not yet assessed the company’s ability to repay.
Secured means that they are backed by specific assets, which offer a safety net for debenture holders in the event of a default.
Presented at its nominal value, without any discounts or premiums for investors, emphasizing the clear goal of raising funds.
This ₹50 crore capital injection is expected to strengthen the company’s liquidity position. It may be used to expand its loan book, repay existing liabilities, or support future growth initiatives in the NBFC space.

What Is Driving the Buzz Around This Penny Stock?

With a current share price below Re 1, Standard Capital Markets has long been a dormant micro-cap counter with limited trading volumes. However, news of this significant fundraising has sparked unusual interest from market watchers.

There are several reasons why this penny stock is now being talked about:

Unusual Volume Activity: Post announcement, the counter witnessed a surge in trading volumes as speculative investors rushed in, betting on a turnaround story.
Strategic Capital Raise: ₹50 crore is a substantial amount for a company with such a small market capitalization, hinting at a potential business revival plan or debt restructuring.
NBFC Sector Interest: In 2025, India’s NBFC sector saw increasing investor interest due to growing credit demand from underserved rural and urban populations, especially in micro-lending, SME credit, and consumer finance.
Penny Stock Psychology: Stocks priced below Re 1 often attract retail interest due to the perception of ‘cheap entry’, though they are also notoriously risky and volatile.

Risks Associated with the Investment

While the fundraising news is undeniably noteworthy, investors must tread cautiously. There are multiple risks to consider:
Lack of Credit Rating: The NCDs’ unrated status implies no third-party assessment of the company’s ability to service the debt, elevating credit risk for debenture holders.
Unlisted Instruments: Since the NCDs are unlisted, they are illiquid and not tradeable on any exchange, limiting exit options.
Penny Stock Volatility: Stocks priced below Re 1 are often highly speculative and can witness sharp movements without underlying business changes.
Opaque Financials: With limited analyst coverage and public scrutiny, companies like Standard Capital Markets may offer limited transparency regarding their financial health and plans.

Broader NBFC Sector Context

Standard Capital Markets’ fundraising also comes when NBFCs are increasingly relied upon to fill the credit gaps left by traditional banks, particularly in the informal and MSME segments.
Following the RBI’s regulatory push for greater compliance, liquidity buffers, and improved asset quality, several NBFCs are merging, raising capital, or transforming into niche lenders to survive and thrive.
In this context, a ₹50 crore capital boost could potentially:
Enhance the company’s capital adequacy ratio (CAR).
Permit the company to engage in new lending activities, particularly in secured areas like gold, vehicle, or SME financing.
Assist in improving its balance sheet by allocating a portion to pay off old debt or lessen the interest burden.

What Lies Ahead?

For Standard Capital Markets, this fundraiser could be a stepping stone towards revival or, at the very least, financial stabilization. The company may slowly crawl out of its penny stock zone if the funds are deployed effectively to generate higher income or refinance expensive debt.
However, a lot depends on execution, governance standards, and future business strategy. Market participants would be keenly watching for further updates such as:
Financial performance in the upcoming quarterly results.
Strategic announcements or partnerships.
Credit rating upgrades (if pursued).
Are there any plans to list the NCDs or raise equity capital?

Conclusion

Standard Capital Markets has taken a significant leap by raising ₹50 crore through NCDs while being a sub-Re 1 penny stock. While the move showcases the intent to strengthen financials, it comes with risks that investors must weigh carefully. The market will closely monitor whether this NBFC can turn the tide and capitalize on the evolving financial ecosystem in India. Until then, the story remains a high-risk, high-reward proposition that may remain speculative or blossom into a genuine turnaround.

 

 

 

 

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