Many investors believe that staying invested in a company for a long period of time helps one receive massive returns. While this statement is quite true for many stocks, there are a few stocks that have delivered massive returns after the Covid-19 crash.
Shilchar Technologies was trading at ₹ 36.75 apiece during the beginning of the lockdown in India. The scrip has delivered multibagger returns of 3802% since then, as its shares settled at ₹ 1,434.05 apiece on Friday. As a result, if an investor had invested in the company’s shares about three years ago, the value of their holdings would have been ₹ 39.02 lakhs today!
Shilchar Technologies is engaged in the business of manufacturing electronics & telecom and power & distribution transformers. The company has recently ventured into the manufacturing of ferrite transformers.
The company reported a 293% increase in its revenue at ₹ 280.24 crores in FY23, compared to ₹ 71.28 crores in FY20. Its net profit increased by a massive 2775% to ₹ 43.12 crores in FY23, compared to ₹ 1.50 crores in FY20.
With a market capitalization of ₹ 1,107 crores, Shilchar Industries is a small-cap company. It has a high return on equity of 48.36% and an ideal debt-to-equity ratio of 0.00. Its shares were trading at a price-to-earnings ratio (P/E) of 20.61, which is lower than the industry P/E of 70.56, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 65.85% stake in it, followed by retail investors with 33.56% and foreign institutions with 0.59%.
Written by Simran Bafna
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