Shares of this multibagger steel stock slipped around 2 percent in Thursday’s trading session after an existing Body Corporate sold 5 lakh equity shares of the company via a Block Deal.
With a market capitalization of Rs 1,652.90 crores, the stocks of Kamdhenu Limited opened their trading hour on Thursday at Rs 602.10 and currently trade at Rs 613.65, slipping around 2 percent compared to the previous close of Rs 626.80 apiece.
Such bearish movements in the company’s share price were witnessed after an existing Body Corporate sold a stake in the company.
As per the data available with the National Stock Exchange (NSE) on 28th February 2024, ‘Three Dee Exim Private Limited’, one of the existing Body Corporates of Kamdhenu Limited, sold 5 lakh equity shares of the company at an average trade price of Rs 581.40 per equity share.
On the other side, ‘Dovetail India Fund’ was the counterparty for the transaction buying the same number of shares at the same trade price.
Keeping a purview of six months, the company’s stock delivered multibagger returns of 108 percent to its stakeholders, i.e., if someone invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.08 lakhs.
During the recent financial quarters, the company’s basic business parameters such as the operating revenues as well as after-tax profits showed movements in opposing directions on a standalone basis.
The former, on one end, slipped from Rs 185 crores during Q2FY24 to Rs 155 crores during Q3FY24, and the latter, on the other end, increased marginally from Rs 10 crores to Rs 11 crores.
As per the recent presentations, the company’s Board intimated about a proposed fundraising of around Rs 100 crores. The same is proposed for numerous purposes, i.e., acquiring a stake in franchisee units, setting up new office premises, diversification of business ventures overseas, and enhancing the company’s overall brand premium.
Kamdhenu Limited is engaged in the business of manufacturing, distributing, marketing, and branding steel. Generating maximum revenue from the steel segment, the company’s portfolio includes TMT bars used in concrete reinforcement structures, dams, bridges & flyovers, etc.
Written by Amit Madnani
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