A multibagger stock in ace investor Dolly Khanna’s portfolio surged 10.63 percent on Tuesday’s trades after the company announced a buyback of its shares. The company’s shares settled at ₹ 686.00 apiece at the closing bell.
As per the latest shareholding pattern of Control Print Ltd., Dolly Khanna holds 1,91,207 shares or a 1.17 percent stake in the company.
Control Print is involved in the development, research, manufacturing, and marketing of printing machines, spare parts, consumables (fluids) and associated services. Its manufacturing facilities for printers and consumables are located at Nalagarh (Himachal Pradesh) and Guwahati (Assam) respectively.
According to an exchange filing, the company’s board has approved the proposal to buy back up to 3.375 lakh (3,37,500) equity shares at a face value of ₹ 10 each at a price of ₹ 800.00. It has fixed Friday, August 18, 2023, as the record date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buyback offer of the company.
The company’s shares delivered multibagger returns of 227 percent in a period of three years as its share price increased from ₹ 209.80 to ₹ 686.00. Therefore, an investment of ₹ 1 lakh in the company’s shares three years ago, would be worth ₹ 3.27 lakhs today!
With a market capitalization of ₹ 1,040 crores, Control Print is a small-cap company. It has an ideal return on equity of 19.19 percent and an ideal debt-to-equity ratio of 0.02. Its shares were trading at a price-to-earnings ratio (P/E) of 18.76, which is lower than the industry P/E of 23.57, indicating that the stock might be undervalued as compared to its peers. Moreover, it has a dividend yield of 1.41 percent.
The company’s promoters hold a 51.78 percent stake in it, followed by retail investors with 40.38 percent, foreign institutions with 5.25 percent and mutual funds with 2.59 percent.
Written by Simran Bafna
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