Stock Hits 5% Upper Circuit as Company Acquires 20% Stake in Eco-Friendly Delivery Platform

Synopsis: A microcap stock surged by 5% soon after the company announced a 20 percent acquisition in an eco-friendly last mile delivery service company. The acquirer has seen its OPM margin increase by 1373 bps and has a 283 percent YoY profit growth in H1FY26.

A company in the business of trading and distribution of industrial and consumer products saw its stock surge by 5 percent soon after the company announced its strategic acquisition of 20 percent in a private company that operates an eco-friendly last-mile delivery platform called Dropon, leading to diversification of product portfolio and more.

With a market cap of Rs 220 Cr, Sellwin Traders Ltd saw its stock hit the upper circuit with an intraday high of Rs 9.37 which is 5 percent higher than the previous close of Rs 8.93.

The company’s stock has given a compounded return of 44 percent in the past 3 years. Another point to note is that, since the market capitalization mentioned above is relatively small, trading in the stock may not be very liquid.

News

Sellwin Traders Ltd has announced that the company has signed a non-binding strategic MOU with Myzek Logistics Pvt Ltd, operator of the eco-friendly last-mile delivery platform- Dropon Deck,  this announcement also stated a potential equity partnership and funding collaboration.

Under the deal, Sellwin may acquire an initial 20 percent stake in Myzek, with plans to increase to  35 percent in phases, through share swap, cash, or a combination. Apart from that the company has also mentioned about Rs 5 crore of funding via convertible instruments.

Myzek boasts more than 68,000 users, along with more than 5 lakh deliveries, and a presence across key cities of Gujarat and runs under its eco-friendly last mile delivery brand- Dropon.

The company has expansion plans into Tier-2 cities with its green delivery technologies. Myzek has a projected revenue Rs. 15.50 crore for FY26 of The partnership strengthens Sellwin’s portfolio in scalable, sustainable businesses.

Previous Acquisitions

Apart from this, Sellwin Traders Ltd has been strengthening its strategic partnerships with key companies, including a planned 36 percent stake in PCIPL’s container project near Bhavnagar via share swap with SBI approving a Rs 20 crore loan.

Another company Sellwin has entered into an MoU is with Kumkum Wellness Private Limited (KWPL) by targeting 36- 60 percent equity in KWPL (or its brand name KAYAPALAT) in order to expand in the wellness sector.

Additionally, Sellwin may also acquire 60 percent of the U.S based Shivam Contracting Inc. through share issuance, investing up to  Rs 52 crore, alongside completing recent preferential share allotments in July and September 2025.

Financials

Sellwin Traders Ltd, incorporated on 29 September 1980 and headquartered in Kolkata, is an Indian public limited company. It operates in trading and distribution of industrial, commercial, agricultural, and consumer products, invests in shares and securities, and provides financial and real estate services. The company’s shares are listed on the Bombay Stock Exchange.

In the latest quarter Sellwin Traders Ltd saw a YoY revenue fall of 6 percent, going from Rs 15.6 Cr in Q2FY25 to Rs 14.6 Cr in Q2FY26, while the QoQ went down by 32 percent from Rs 21.8 Cr in Q1FY26. Though the revenue has been falling the YoY Net Profits grew by 227 percent, going from Rs 83 Lakh in Q2FY25 to Rs 2.7 Cr in Q2FY26, but the QoQ fell by 13 percent from Rs 3.1 Cr in Q1FY26.

In H1FY26, the company has a net profit of Rs 5.8 Cr, which is a 283 percent YoY growth from the last year’s Rs. 1.53 Cr, with the revenue growth for the same period stood at 13 percent, going from Rs 32 Cr in H1FY25 to Rs 36.5 Cr in H1FY26.

The increase in profit can be attributed to the increased OPM, as the company had its OPM at 7.11 percent in September 2024, but as of September 2025 this increase by 1373 bps to become 20.84 percent.

Apart from the P&L numbers, the company also witnessed an increase in the FII holdings. Sellwin Traders Ltd saw a 0.53 percent FII holding as of the latest quarter of Q3FY26, while this number was nil in the previous years.

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