A multibagger company from ace investor Ashish Kacholia’s portfolio has declared a buyback. He holds 11,02,527 shares or a 1.01 percent stake in the company, as per the latest shareholding pattern.
Goldiam International has informed the bourses that its board has approved the proposal to buyback up to 21,79,493 ( 21.79 lakh) fully paid-up equity shares of a face value of ₹ 2 each, representing 2 percent of the total issued and paid-up share capital of the company.
The price for the buyback is fixed at ₹ 150, which is at a premium of 15.83 percent as compared to the previous session’s closing price of ₹ 129.50. The board has fixed July 20, 2023, as the record date for this purpose.
The board may increase the buyback price and decrease the number of shares to be bought back, till one working day before the record date, i.e., by July 20, 2023, so that the overall size of the buyback remains unchanged.
Goldiam International is engaged in the manufacturing and export of diamond-studded gold and silver jewellery. It is a fully integrated original equipment manufacturer (OEM) for retailers.
In the past five years, the company’s share price increased by a whopping 1120 percent to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 12.20 lakhs today!
With a market capitalization of ₹ 1,411 crores, Goldiam International is a small-cap company. It has an ideal return on equity of 15.41 percent and is almost debt free. Its shares were trading at a price-to-earnings ratio (P/E) of 16.56, which is lower than the industry P/E of 26.43, indicating that the stock might be undervalued as compared to its peers. Its promoters hold a 66.39 percent stake in it, while retail investors hold a 33.55 percent stake in the company.
Written by Simran Bafna
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