Domestic benchmark indices NSE Nifty 50 and BSE Sensex ended in the red for the fourth session in a row, dragged by IT and financial shares. The thirty-share BSE Sensex settled at ₹ 57900.19 (down 0.58), and the fifty-share NSE Nifty 50 was at 17,043.30 points (down 0.65%) on Tuesday’s closing bell.
Meanwhile, Xpro India Ltd, an Ashish Kacholia stock gained 20% and got locked in an upper circuit at ₹ 653.70 apiece.
Xpro India is mainly engaged in the business of polymer processing at multiple locations and is a leading manufacturer in India of Coextruded Plastic Films, thermoformed liners and specialty films.
Ace investor Ashish Kacholia holds a 4.5% stake in the company. He has 788,550 shares and his holdings were worth ₹ 50.3 crores as of Tuesday.
The company’s shares gained after it announced that its board has considered and approved the allotment of 262,000 and 66,000 fully paid equity shares of ₹ 10 each of the company (at a premium of ₹ 752 per share) to Central lndia GeneralAgents Limited (‘ClGAL”) and lM/s Janardhan Trading Co. Limited (“JTCL”).
In addition, the board also approved the allotment of 131,000 and 33,000 equity shares to CIGAL and JTCL respectively as bonus shares in the ratio of one fully paid-up equity share of ₹’10 each for every two fully paid-up equity shares of ₹ 10 each.
The company has a market capitalization of ₹ 965 crores and is a small-cap company. It has an excellent return on equity of 34.31% and an ideal debt-to-equity ratio of 0.22. Its shares were trading at a price-to-earnings ratio (P/E) of 19.44, which is higher than the industry P/E of 12.41, indicating that investors are willing to pay a higher price for the company’s future earnings.
Written by Simran Bafna
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