The shares of Raghav Productivity Enhancers Ltd, a small-cap multibagger stock were in the green after two ace investors, Ashish Kacholia and Mukul Agrawal bought a fresh stake in the company.
Raghav Productivity Enhancers manufactures ramming mass and other quartz-related products. It manufactures, supplies and exports silica (acidic) ramming mass. Ramming mass is used as a furnace refractory lining material for steel industries.
During the September to December quarter of 2022, Mukul Agrawal bought 1,78,074 fully paid-up equity shares or a 1.64% stake, and Ashish Kacholia bought 2,31,683 fully paid-up equity shares or a 2.13% stake in the company. According to the shareholding data released by the company, both investors did not have a stake in the company.
Raghav Productivity Enhancers is a small-cap company with a market capitalization of ₹ 998 crores. Its shares closed at ₹ 925.00 apiece on Friday. The company has an ideal return on equity of 20.55% and an ideal debt-to-equity ratio of 0.17.
Further, its shares were trading at a price-to-earnings ratio of 50.51, which is significantly higher than the industry average of 13.13. This indicates that the stock is overvalued as compared to its peers.
The company’s shares were available at ₹ 106.50 apiece three years ago. Its share price surged 768.55% to quote at ₹ 925.00, thereby giving multibagger returns. If an investor would have invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 8.68 lakhs today!
Written by Simran Bafna
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