According to bulk deals data available on the Bombay Stock Exchange (BSE), ‘Big Whale’, Ashish Kacholia has bought a fresh stake in Raghav Productivity Enhancers Ltd, a stock that has given multibagger returns.
Raghav Productivity Enhancers, formerly Raghav Ramming Mass, manufactures quartz-based ramming mass, quartz powder and tundish board. It is a producer of ramming mass minerals used in induction furnaces. Further, it manufactures and exports ferroalloys, ramming mass, silica ramming mixes, and pig iron.
Ace investor Ashish Rameshchandra Kacholia, on Friday, picked 2,31,683 shares of Raghav Productivity Enhancers at an average price of ₹ 842.00 apiece, via an open market transaction, according to the Bulk deals data available on the BSE. This amounts to a 2.13% stake in the company or an investment of ₹ 19.50 crores.
Ashish Kacholia picked the shares when they were trading near their intraday low on Friday. The share price of the company increased by 16.27% from ₹ 842.00 to ₹ 979.00 per share, soon after the big whale bought shares in it.
The company’s shares have given multibagger returns of 101.60% in the past six months. Therefore, if an investor would have invested ₹ 1 lakh in the shares of the company six months ago, the value of their holdings would have been ₹ 2.01 lakhs today!
In addition, its shares have given multibagger returns of a whopping 1,094.30 % in the past five years. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 11.94 lakhs today!
Raghav Productivity Enhancers is a small-cap stock with a market capitalization of ₹ 611 crores. The company is almost debt free and has a debt-to-equity ratio of 0.10. It has an ideal return on equity of 20.55%. Further, its shares are trading at a price-to-equity (PE) ratio of 34.16, which is more than double the industry PE of 14.57. Therefore the stock might be overvalued as of now.
Written by Simran Bafna
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