Small-cap penny stock jumps 5% despite weak markets. Here’s why

Stock Market Today: Small-cap penny stock Rana Sugars gained 5% in intraday trade on Monday, March 3, despite weak stock market sentiment.

Gains for Rana Sugar followed the announcement of its financial performance for the three and nine months ended December 2024.

Rana Sugars Q3 results

Rana Sugars' net profit for the quarter ended December 2024 stood at ₹14.20 crore, a multifold jump over ₹5.5 crore posted in the year-ago quarter.

Rana Sugar's revenues from operations came in at ₹390.35 crore during the quarter under review, up almost 16% compared to ₹337.16 crore in the year ago quarter.

On a sequential basis, too, Rana Sugar's net profit was higher than a loss of ₹14.5 crore in posted in Q2 FY25. However, the sugar season starts during the October to December quarter only with the arrival of fresh crop of sugar cane. The July-to-September quarter, on the other hand, does not see any major production activity. Mills only sell leftover inventory during the quarter and opt for maintenance activities of the plant. Thus, the year-on-year growth reported by Rana Sugars during the October -December quarter is the only relevant parameter to gauge for performance and not the sequential matrix.

Rana Sugars share price movement

Rana Sugars share price opened at ₹14.70 on the BSE on Monday, which was more than 8% higher than the previous day's closing price of ₹13.61. 

Rana Sugars share price gained further to an intraday high of ₹15.35, which meant gains of more than 12% on a day when the benchmark S&P Sensex was down more than 400 points. Rana Sugars share price thereafter oscillated between intraday highs of ₹15.35 and ₹14.07 on the BSE in Monday's trading session.

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