Shares of this multibagger stock under the ‘micro-cap’ category hit the 20 percent upper circuit after Ashish Kacholia bought a fresh stake in the company. In the last five trading sessions, the company’s scrip has drastically jumped by 55 percent from Rs 150 to the current price level.
With a market capitalization of Rs 281.07 crores, the stocks of Universal Autofoundry Limited were locked in the 20 percent upper circuit at Rs 232.05 since the start of the trading session on Friday. The locked price also marks the company’s fresh 52-week high level.
Such sharp movements were observed after reports mentioning one of the celebrity investors picking a stake in the company via Bulk Deals.
According to reports, Mr. Ashish Kacholia, a well-known ace investor based in India, bought 10.34 lakh shares of the company at an average price of Rs 161.59 per equity share through a Bulk Deal. The shares bought exhibit an 8.54 percent stake in the company.
Keeping a purview of one year, the company’s stock has proven to deliver multibagger returns of 122 percent, i.e., a 1 Lakh investment in the stock would have converted to 2.22 Lakhs within a period of one year if someone had invested in the company’s stock.
During the recent quarters, the company’s basic operating parameters, including the revenues and net profits, moved in opposing directions with the former reducing from Rs 60.5 crores during Q4FY22-23 to Rs 57.56 crores during Q1FY23-24, and, the latter moving up from Rs 1.53 crores to Rs 3.56 crores.
The latest shareholding data of the company, as per the June 2023 quarter, portray the Promoters holding a 51.47 percent stake followed by the Retail Investors holding the remaining stake in the company.
Universal Autofoundry Limited is engaged in the business of manufacturing iron castings. The company manufactures casting components in ductile iron and grey iron for the automotive sector. In addition, the company supplies castings with surface treatments as per the specific requirements.
Written by Amit Madnani
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