Shares of this packaging company under the ‘small-cap’ category have proven to deliver multibagger returns over a short-term period of four years. In the past year, the company’s stock delivered multibagger returns of close to 40 percent to its holders.
Incorporated in 1997, Xpro India Limited is engaged in manufacturing and selling polymers primarily in India. The company offers polypropylene films for use in the packing of adhesive tapes, bakery products, metalizing, print lamination products, salted snacks, supermarket products, and others.
With a market capitalization of Rs 2,129.14 crores, the company’s shares opened the trading hour on Friday at Rs 1,003.25 and, after some volatility, the stock closed the session at Rs 1,029.95, gaining around 2.10 percent compared to the previous close of Rs 1,008.85 apiece.
According to the data available from the Bombay Stock Exchange (BSE), the company’s stock has given multibagger returns of approximately 9,600 percent over a period of four years ranging from Rs 10.60 per share in May 2020 to the prevailing share price level.
The same means that if someone had invested Rs 10,000 into the stock four years ago, it would have converted to around Rs 9.70 lakhs. The company’s stock hit its 52-week high price in February 2024 recorded at a price of Rs 1,297.80.
Coming onto the latest financial reports, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, portrayed movements in opposing directions with the former, on one end, falling marginally from Rs 110 crores during Q2FY24 to Rs 96 crores during Q3FY24, and the latter, on the other end, increasing from Rs 9 crores to Rs 11 crores.
In addition to the above, the consolidated return ratios of the company, viz, the return on equity (RoE) as well as the return on capital employed (RoCE), were reported at healthy numbers during FY23 with the former reported at 19.42 percent and the latter at 26.17 percent.
As per the shareholding pattern data for the March’24 quarter, the company’s Promoters hold a 42.46 percent stake, Foreign Institutional Investors (FIIs) hold a 14.97 percent stake, and the Public (retail) investors hold around 39.45 percent stake in the company.
Written by Amit Madnani
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