Kretto Syscon - Penny Stock Under Rs 5 Rallies on Dividend and Bonus Buzz: Hidden Gem or Risky Bet
Kretto Syscon shares hit the upper circuit on dividend and bonus buzz. Discover the company’s business model, promoter holding, financials, and technical trends to understand if this penny stock under Rs 5 is worth a second look.
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| Kretto Syscon - Penny Stock Under Rs 5 Rallies on Dividend and Bonus Buzz: Hidden Gem or Risky Bet |
Kretto Syscon: A Deep Dive into the Rising Penny Stock Making Waves with Dividend and Bonus Announcements
In a market that often sidelines penny stocks as speculative or risky, Kretto Syscon Limited has emerged from obscurity to capture the attention of retail investors and market watchers. On June 20, 2025, shares of Kretto Syscon hit the 5 percent upper circuit, closing at Rs 2.05, on the back of promising corporate developments, including a potential 100 percent final dividend and a bonus issue.
The excitement started when the company submitted a notification to the exchanges, letting investors know that the Board of Directors will convene on July 15, 2025, to discuss these measures favorable to shareholders. After achieving an impressive 121 percent increase over the previous year, despite a temporary decline in June, this penny stock is now attracting considerable interest.
Let’s explore what lies behind the headlines, including its business model, promoter shareholding, fundamentals, technical analysis, and the road ahead.
About Kretto Syscon Limited
Kretto Syscon is categorized as a penny stock, but the company has positioned itself with ambitions far bigger than its current market price suggests.
Core Business Model
Kretto Syscon operates primarily in two high-potential areas:
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Real Estate Development
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Technology-Driven Solutions
In the real estate space, the company aims to deliver innovative, cost-effective, and consumer-centric infrastructure projects. It targets mid-income and lower-income segments in urban and semi-urban areas, which gives it a broad market base with consistent demand.
Simultaneously, Kretto has ventured into tech-driven initiatives, likely involving smart infrastructure, digital property management, or other real estate tech platforms. The company claims to adopt a hybrid model of infrastructure expertise with technology innovation, although detailed disclosures are limited due to its smaller scale.
Such a dual-pronged strategy offers scalability if executed well, especially in a country like India, where urbanization and digital adoption are simultaneously booming.
Promoters and Shareholding Pattern
According to the latest filings available from the financial year 2024:
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Promoters of Kretto Syscon hold approximately 47.33 percent of the total equity share capital.
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The remaining 52.67 percent is held by public shareholders, largely retail investors.
This promoter stake is moderately healthy for a micro-cap firm, suggesting that the founding team has retained significant skin in the game. However, no institutional or mutual fund holdings have been disclosed, which is typical for companies in this valuation bracket.
It is worth noting that a rise in promoter holding or inclusion of institutional investors in the coming quarters could serve as a positive trigger for re-rating the stock.
Dividend and Bonus Buzz: What It Means
As per the official filing:
The Board of Directors of Kretto Syscon Limited is set to convene on Tuesday, July 15, 2025, to discuss the potential declaration of a final dividend of up to 100 percent and the issuance of bonus shares, pending necessary approvals.
This translates to a potential Rs 1 dividend per share, given the face value is Rs 1. This is a significant return considering the stock is currently priced at Rs 2.05. A 100 percent dividend yield on face value often grabs market attention, although one must remember that the actual yield on market price is different.
The proposed bonus issue could further enhance liquidity and attract retail traders, although the bonus ratio and record date will be disclosed post the board meeting.
Stock Performance: One-Year Returns
Here’s a month-by-month snapshot of Kretto Syscon’s performance:
| Month | Monthly Return |
|---|---|
| January 2025 | 23.50 percent |
| February 2025 | 22.50 percent |
| March 2025 | 2.22 percent |
| April 2025 | 11.40 percent |
| May 2025 | 7.80 percent |
| June 2025 | - 7.00 percent |
Fundamental Analysis (Estimated for FY 2024-25)
While audited financials for FY 2025 are yet to be declared, here is an overview based on the last available data:
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Market Cap: Rs 9.25 Crores
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Face Value: Rs 1
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Revenue: Rs 3.5 to 4 Crores (Estimated)
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Net Profit: Marginal, but improving year on year
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Book Value: Rs 1.28
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Price to Earnings Ratio: Around 18 to 20 (not meaningful for micro-caps with low earnings)
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Debt: Minimal (suggesting no major leverage risks)
Key Observations
The company's profitability is still in the early stage, but its debt-light structure is a positive.
A low revenue base limits scalability in the short term unless large contracts or projects are secured.
Technical Analysis
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Current Price: Rs 2.05
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52-Week High: Rs 2.09
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52-Week Low: Rs 0.88
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20-Day Simple Moving Average: Rs 1.88
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Relative Strength Index: Approximately 67
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MACD Indicator: Positive crossover occurred in early June
Technical Trend
The stock has been riding a medium-term uptrend, though RSI indicates near-term caution. Momentum traders may continue to find value unless there is an abrupt reversal or adverse news.
Risks and Red Flags
Investing in penny stocks always comes with heightened risks. Points to consider include:
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Lack of liquidity: Low float can mean difficulty in exiting positions.
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Limited public information: Smaller companies often provide fewer disclosures.
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Speculative movement: A large part of the recent rally could be based on expectations.
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Sustainability: Growth and profitability are not yet solidified.
Final Verdict: Should You Invest
Kretto Syscon has managed to rise from obscurity due to consistent stock performance, corporate action announcements, and a dual-sector focus.
However, it is crucial to approach with cautious optimism. Investors should monitor the July 15 Board meeting outcome carefully and review financials post-results season before making significant investments.
This could be a potential multi-bagger, but it remains a high-risk, high-reward play more suited to experienced investors or those with a small-cap strategy.
Author’s Notes
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Source: Exchange filings, market data platforms, and media reports.
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This article is intended for informational purposes only and does not constitute financial advice.
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Please consult with a SEBI-registered investment advisor before making any stock-related decisions.
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