The shares of this multibagger small-cap stock in the “auto ancillary” segment hiked after an increase in stake by well-known ace investor Mr. Sunil Singhania. The stock has raced up gaining around 11 percent in the last one month.
The stocks of Dynamatic Technologies Limited opened their trading hour today at Rs 3,909 and currently trade at Rs 3,974.35 indicating a gain of approximately 2 percent compared to the previous close of Rs 3,909.95 apiece.
The scrip is near its 52-week high mark which was recorded at Rs 4048.95 on 14th July 2023. The company has a market capitalization of Rs 2,700 crores.
Keeping a purview of one year, the company’s stock has proven to deliver multibagger returns of 110 percent to its stakeholders. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.10 Lakhs within the above-mentioned period.
Ace investor Mr. Sunil Singhania, who made an entry into the stock in September 2021, increased his stake in the June 2023 quarter by 0.08 percent, i.e., from a 2.83 percent stake during the March 2023 quarter to a 2.91 percent stake in June 2023 quarter. Currently, he holds 197,728 equity shares of the company and the holding value stands at around Rs 78.60 crores.
Digging into the latest financials reported by the company, the basic operational parameters such as the revenues and net profits have shown an up movement with the former moving from Rs 1,253 crores during FY21-22 to Rs 1,315 crores in FY22-23, and, the latter moving from Rs 32 crores to Rs 42 crores during the same time horizon.
The profitability metrics, in congruence with the pattern shown above, have increased with the return on equity (RoE) moving from 4.05 percent during FY21-22 to Rs 7.89 percent in FY22-23, and, the return on capital employed (RoCE) taking a shift from 12.22 percent to 13.17 percent.
Dynamatic Technologies Limited is engaged in the business of manufacturing engineered products for the automotive, aerospace, and hydraulic industries. The company also manufactures complex high-precision ferrous castings for turbochargers as well as automobile engines.
Written by Amit Madnani
