Companies have started releasing their shareholding patterns for the first quarter of the current financial year 2023-24 (Q1FY24). Many investors closely follow the changes in the shareholding of seasoned investors like Ashish Kacholia.
Shares of Agarwal Industrial Corporation gained 9.36 percent on Thursday’s intraday trades to reach an intraday high of ₹ 687.95 apiece. This happened after Ashish Kacholia increased his stake in the company. At 01:30 PM, its shares were trading at ₹ 667.00 apiece, up 6.03 percent.
The shareholding pattern of the company for the latest quarter (Q1FY24) shows that Ashish Kacholia holds 5,87,977 shares or a 3.93 percent stake in it. However, he held 5,72,128 shares or a 3.82 percent stake in the company as of the March quarter of the previous financial year (Q4FY23). This means that the ace investor has increased his stake in the company by 0.11 percent.
Agarwal Industrial Corporation is primarily engaged in the business activities of manufacturing and trading petrochemicals (bitumen and bituminous products), logistics of bitumen and liquefied petroleum gas and energy generation through windmills.
With a market capitalization of ₹ 941 crores, Agarwal Industrial Corporation is a micro-cap stock. It has a high return on equity of 26.42 percent and an ideal debt-to-equity ratio of 0.39. Its shares were trading at a price-to-earnings ratio (P/E) of 9.61, which is significantly lower than the industry P/E of 16.24, indicating that the stock might be undervalued as compared to its peers.
Currently, the company’s promoters hold a 57.20 percent stake in it, followed by retail investors with 36.44 percent and foreign institutions with 6.36 percent.
In the past year, the company’s share price increased by 46.28 percent, however, in the past two years, it gained 102 percent to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 2.02 lakhs today!
Written by Simran Bafna
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