Shares of this consumer electronics stock under the ‘micro-cap’ category have proven to deliver multibagger returns over a short-term period of just three years.
Incorporated in 2005, Pulz Electronics Limited is engaged in the business of developing, manufacturing, and selling audio systems within as well as outside India. Its products include speakers, microphones, amplifiers, and signal-processing solutions.
With a market capitalization of Rs 141 crores, the company’s shares opened the trading hour on Friday at Rs 131 and closed the session at Rs 126, slipping approximately 2.80 percent compared to the previous close of Rs 129.55 apiece.
According to the data available from the National Stock Exchange (NSE), the company’s stock has given multibagger returns of approximately 2,160 percent over a period of just three years ranging from Rs 5.35 in March 2021 to the current stock price levels.
The same means that if someone had invested Rs 10,000 into the stock, it would have converted to around Rs 2.26 lakhs within the above-mentioned period.
Coming onto the latest financial reports, the company, on a half-yearly basis, has portrayed an increase in operating revenues as well as net profits.
The operating revenues increased from Rs 22.73 crores during the March 2023 quarter to Rs 24.17 crores during the September 2023 quarter, and, the net profits, in congruence, rose from Rs 3.71 crores to Rs 4.09 crores keeping the timeframe the same.
In the past couple of financial years, the company’s bottom-line numbers have reached the positive zone which favorably impacts the profitability ratios of the company. The return on equity (RoE) rose from 9.21 percent during FY21-22 to 32.21 percent during FY22-23 and the return on capital employed (RoCE) showed a shift from 11.71 percent to 41.89 percent.
According to the latest shareholding data available, the company’s Promoters hold a 73.26 percent stake followed by the Public (retail) investors holding the remaining stake in the company.
Written by Amit Madnani
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