Shares of an ice-cream maker surged 14.4% on Thursday’s intraday trades to reach an intraday high of ₹ 3080.00 apiece on the National Stock Exchange (NSE). This happened after the company announced its results for the latest quarter. At 12:05 PM, its shares were trading at ₹ 2,895.00, up 7.53%.
According to an exchange filing, Vadilal Industries’ profit after tax came in at ₹ 71.01 crores in the April to June quarter of the financial year 2023-24 (Q1FY24), up 43.57% compared to ₹ 49.46 crores in the corresponding quarter of the previous financial year (Q1FY23). Its revenue climbed 5.04% to ₹ 410.91 crores as compared to ₹ 391.19 crores in the corresponding quarter of the previous year.
Vadilal Industries is engaged in the business of manufacturing ice-cream, frozen dessert, juices, and candy. Moreover, it processes and exports food products, such as frozen fruits and vegetables, canned fruit pulp, ready-to-eat and ready-to-serve products, and so on.
The company’s share price increased by 150% in the past two years to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in its shares, the value of their holdings would have been ₹ 2.5 lakhs today!
With a market capitalization of ₹ 1,935 crores, Vadilal Industries is a small-cap company. It has a high return on equity of 27.73% and an ideal debt-to-equity ratio of 0.73. Its shares were trading at a price-to-earnings ratio (P/E) of 20.10, which is lower than the industry P/E of 23.45, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 64.73% stake in it followed by retail investors with 35.24% stake and foreign institutions with 0.03%.
Written by Simran Bafna
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