Shares of this multibagger Ashish Kacholia stock under the ‘small-cap’ category soared 5 percent after the company expects strong business growth in the forthcoming years. In the last five trading sessions, the company’s stock has gained nearly 13 percent.
With a market capitalization of Rs 3,346.51 crores, the stocks of Garware Hi-Tech Films Limited started their trading session on Friday at Rs 1,380 and currently trade at Rs 1,440.45, gaining around 5 percent as compared to the previous close of Rs 1,371.80 apiece.
Such bullish movements in the stock prices were witnessed after the company, in a recent BSE filing, informed that the company held an Annual General Meeting (AGM) on 27th September 2023. One of the highlights of the meeting was the positive outlook seen in a couple of its business segments.
The company expects growth in its ‘solar control films’ business offering unique features such as 99 percent UV and Infrared rejection. The outlook is supported by global economic recovery, untapped domestic markets and diversification.
Moreover, the company has a positive outlook for the ‘paint protection film’ segment for both, the domestic as well as international markets. It expects higher PPF penetration due to rapid growth in the electric vehicles (EV) segment.
Mr. Ashish Kacholia, one of the well-known ace investors based in India, has invested in the company’s shares. As per the June 2023 quarter, he holds 9.68 lakh equity shares of the company equating to 4.17 percent stake. Currently, his holding value stands at Rs 140 crores.
Keeping a purview of just six months, the company’s stock has proven to deliver multibagger returns of around 175 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock six months back, it would have converted to Rs 2.75 lakhs.
Over the past three financial quarters, the company has been successful in marking a consistent increase in the basic indicators such as the operating revenues and after-tax profits.
The most recent movement in operating revenues showcases a jump from Rs 349.01 crores during Q4FY22-23 to Rs 379.71 crores during Q1FY23-24. During the same time horizon, the after-tax profits marginally went up from Rs 43.07 crores to Rs 43.69 crores.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 60.72 percent stake followed by the retail investors holding a 36.81 percent stake in the company.
Garware Hi-Tech Films Limited is involved in the business of manufacturing thermal lamination films, polyester films, sun control films, etc. The company also manufactures premium heat rejection films based on latest Infrared (IR) reduction technologies and the products are used in packaging, motor & cable insulations, and many more. Geographically, it derives a majority of revenue from domestic operations within India.
Written by Amit Madnani
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