Technocraft Industries (India) Ltd shares hiked more than 5 percent as of Thursday 13th Apr closing at a price of Rs 1,505.05. The stock, trading near its 52-week high figure of Rs 1,541.80, has gained around 10 percent in the last five trading sessions.
It witnessed an intra-day high figure of Rs 1,528 representing an upside of about 6.75 percent as compared to the previous closing levels of Rs 1,431.25.
One of the probable reasons for such a movement in the stock price is the recent updates pertaining to the holdings of Ace Investor Sunil Singhania for the March quarter.
He invested an additional 0.2 percent stake in the company shifting the stake from 3 percent in the December quarter to a 3.2 percent stake in the latest quarter of March. The current holdings stand at 735,324 shares which equates to a value of 111.5 crores.
Technocraft Industries (India) Ltd is an India-based company that is engaged in the business of drum closures, scaffolding, engineering, and textile. The company offers various types of products which comprise of Closures, Nylon Plugs, etc. Along with domestic operations, has a business presence outside India as well.
The company reported decent growth as far as revenues and net profits are concerned. Revenues saw a movement from Rs 476 crores in Q2 to Rs 489 crores in Q3. Net profits, in congruence, went up from Rs 66 crores in Q2 to Rs 87 crores in Q3.
Coming onto the profitability aspects of the company, the ROE as well as ROCE figures have improved in the recent financial years with ROE shifting from 14.56 percent during FY20-21 to 22.79 percent in FY21-22 and ROCE moving from 13.78 in FY20-21 to 22.55 percent in FY21-22.
The debt to equity ratio of the company has reduced over the past three financial years with the most recent movement being a shift from 0.44 during FY20-21 to 0.38 in FY21-22.
As per the data available for the quarter ending March 2023, promoters hold a 74.61 percent stake in the company, marginally reduced from the 74.68 percent held as per the December quarter. FIIs, on the other hand, hold a constant stake of 0.77 percent in the company.
Keeping a purview of two years, the stock has been able to provide multibagger returns of around 296 percent to its stakeholders. It means that if someone would have invested Rs 1,00,000 in the stock, it would have converted to Rs 3,96,000 within a period of two years.
Written by Amit Madnani
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