Shares of this stock under the ‘small-cap’ category have proven to deliver multibagger returns over a long-term period of ten years. The stocks of this company are also included in the portfolio of Mr. Mukul Agrawal, a well-known ace investor based in India.
Vidhi Specialty Food Ingredients Limited is involved in the business of manufacturing as well as trading synthetic food colors and chemicals. Some of the products offered by the company include synthetic water-soluble colors, aluminum lakes, natural colors, etc.
With a market capitalization of Rs 2,119.42 crores, the company’s shares closed at a price of Rs 424.35 on Friday. The stock reached its 52-week high level on 23rd August 2023 at a price of Rs 447.3.
According to the data available from the Bombay Stock Exchange (BSE), the company’s stock has given multibagger returns of approximately 17,220 percent over a period of 10 years ranging from Rs 2.45 in August 2013 to the current stock price levels.
The same means that if someone had invested Rs 1 Lakh into the stock, it would have converted to around Rs 1.73 crores within the above-mentioned period.
Mr. Mukul Agrawal holds the company’s shares in his portfolio. He took an entry into the stock in September 2021, and, as per the latest quarter that ended in June 2023, the ace investor holds 9 Lakh equity shares equating to a 1.80 percent stake in the company.
The latest financial reports of the company portray the operating revenue marginally falling from Rs 89 crores during Q4FY22-23 to Rs 79 crores during Q1FY23-24. Despite the same, the net profits have stayed uniform at Rs 8 crores.
The debt-to-equity ratio of the company, though increased in the latest financial year, has stayed within the desired limits showing a change from 0.07 times within FY21-22 to 0.20 times during FY22-23.
Additionally, healthy profitability ratios of the company were reported with the return on equity (RoE) standing at 15.03 percent and the return on capital employed (RoCE) reported at 20.64 percent.
The latest shareholding data available for the March 2023 quarter represents that the promoters hold a 64.27 percent stake followed by the retail investors holding a 35.64 percent stake in the company.
Written by Amit Madnani
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