The Ambani Group is India’s largest conglomerate, with a significant presence in the Indian economy. The group includes several companies that operate in various sectors such as natural gas, petrochemicals, retail, mass media, telecommunications, textiles, and energy.
Listed below is one such Ambani group stock that has delivered multibagger returns of 2,434 percent to its stakeholders in just 3 years:
Lotus Chocolate Company Ltd
With a market capitalization of Rs. 900 crores, the shares of the chocolate manufacturing company started Tuesday’s trading session on a higher note at Rs. 709.90 compared to its previous close of Rs. 699.05. During the trading session, the shares hit a low of Rs. 688, losing around 1 percent and closed the day at Rs. 698 apiece.
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Financials:
Looking at the company’s financial statements (standalone), the revenue zoomed by 41 percent from Rs. 37.59 crores during the December quarter to Rs. 52.89 crores in the March quarter. On the other hand, the net profits showcased a transition from a net loss of Rs. 51.42 lakhs to a net profit of Rs. 80.38 lakh.
Comparing the same metrics on a YoY basis, the revenue magnified by 329 percent from Rs. 12.33 crores during Q4FY23 to Rs. 52.89 crores in Q4FY24. In addition, the company reported a net profit of Rs. 80.38 lakhs against a net loss of Rs. 5.81 crores during the same timeframe.
Returns:
In July 2021, the stock price was trading at Rs. 28 exhibiting a gain of around 2,434 percent compared to the current price. For example, if someone had invested Rs. 10,000 into the company’s stock 3 years ago, it would have converted to approximately Rs. 2.53 lakhs now.
History:
In 2023, Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Retail Ventures Limited (RRVL), completed the acquisition of a 51 percent controlling stake in Lotus Chocolate Company Limited for an aggregate consideration of Rs 74 crores. Post-acquisition, the stock has delivered more than 400 percent to its shareholders.
The acquisition is part of Reliance Retail’s strategy to build its FMCG business, which will see RCPL compete with players like Britannia Industries and Nestle India.
Shareholding Pattern:
According to the latest shareholding patternPromoters control 742.07 percent of the shares (including a 51 percent stake held by Reliance), with Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) each holding 0.01 percent, while Retail Investors hold the remaining 27.91 percent.
Company Profile:
Lotus Chocolate Company is a leading manufacturer of fine chocolates, cocoa products, and cocoa derivatives, supplying to chocolate makers and users worldwide, from local bakeries to multinational companies.
Written by Vaibhav V Patil
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