Ashish Kacholia’s portfolio speaks for itself and is widely followed by investors. One of his stocks gained 7.75 percent on Wednesday’s intraday trades after the company announced a bonus issue.
According to an exchange filing, Raghav Productivity Enhancers Ltd (RPEL) has announced a bonus issue in the ratio of 1:1, i.e., one bonus share of ₹ 10 each for every existing equity share of ₹ 10 each. The record date for the same is August 08, 2023. This corporate action was approved by its shareholders at the company’s annual general meeting (AGM).
RPEL is engaged in the manufacturing of quartz-based ramming mass, quartz powder, and tundish board. It sells its products under the brand name “Raghav”.
Ashish Kacholia holds 2,31,683 shares or a 2.02 percent stake in the company as per the data available for the April to June quarter of the financial year 2023-24 (Q1FY24).
At 01:52 PM on Wednesday, its shares were trading at ₹ 1072.00 apiece. In the past three years, the company’s share price increased from ₹ 91.80 apiece to the current level, delivering multibagger returns of 1068 percent. Therefore, an investment of ₹ 1 lakh in the company’s shares three years ago would have been worth ₹ 11.68 lakhs today!
The company recently announced a greenfield expansion unit for manufacturing high-quality Silica Ramming Mass. It was built with a total capex of ₹ 65 crores which was funded by a term loan of ₹ 10 crores and the balance was funded from its parent company, RPEL. The company continues to generate strong operating cash flows and consequently maintains a net debt-free balance sheet despite this investment.
With a market capitalization of ₹ 1,160 crores, RPEL is a small-cap company. It has an ideal return on equity of 20.86 percent and an ideal debt-to-equity ratio of 0.07. Its shares were trading at a price-to-earnings ratio (P/E) of 45.99, which is higher than the industry P/E of 16.10, indicating that the stock might be undervalued as compared to its peers. The company’s promoters hold a 62.92 percent stake in it, while retail investors hold a 37.08 percent stake in it.
Written by Simran Bafna
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