Shares of this trading stock under the ‘small-cap’ category have proven to deliver multibagger returns over a short-term period of just four years. In the past month, the company’s stock rose close to 40 percent for its holders.
Established in 1985, Veritas (India) Limited is a Mumbai-based company focused on trading & distribution of logistics, chemicals, software development, power generation, etc.
With a market capitalization of Rs 3,167.87 crores, the company’s shares opened the trading hour on Friday at Rs 1181.60 and, after some volatility, the stock closed the session at the same level, hitting its 2 percent upper circuit compared to the previous close of Rs 1,158.45 apiece.
According to the data available from the Bombay Stock Exchange (BSE), the company’s stock has given multibagger returns of approximately 4,600 percent over a period of just four years ranging from Rs 25.10 in April 2020 to the closing stock price levels.
The same means that if someone had invested Rs 10,000 into the stock four years ago, it would have converted to around Rs 4.70 lakhs. Coming onto the latest financial reports, the company, during the recent quarters, has portrayed an increase in operating revenues as well as net profits.
The operating revenues increased from Rs 941 crores during the September 2023 quarter to Rs 1,324 crores during the December 2023 quarter, and, the net profits, in congruence, rose from Rs 42 crores to Rs 96 crores keeping the timeframe the same.
On a contrasting note, the return ratios, viz, the return on equity (RoE) as well as the return on capital employed (RoCE), have reported a dip in numbers during the recent financial years with the former reducing from 4.95 percent during FY21-22 to 4.11 percent during FY22-23 and the latter from 4.54 percent to 3.74 percent.
According to the latest shareholding data available for the December 2023 quarter, the company’s Promoters hold a 55.01 percent stake, and the Foreign Institutional Investors (FIIs) hold a 9.73 percent stake in the company.
Written by Amit Madnani
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