Shares of a micro-cap company jumped 18% to reach an intraday high of ₹ 139.90 apiece on the National Stock Exchange (NSE) after the company announced its results for the first quarter of the current financial year. At 12:39 PM, its shares were trading at ₹ 134.50 apiece, up 16.91%.
According to an exchange filing, Kothari Products recently announced a massive 455% increase in its consolidated profit to ₹ 11.71 crores in the latest quarter (Q1FY24), compared to ₹ 2.11 crores in the corresponding quarter of the previous year (Q1FY23). However, its revenue declined to ₹ 224.33 crores in the latest quarter, compared to ₹ 413.65 crores in Q1FY23.
Kothari Products is primarily engaged in the international trading of various products and commodities. It is also engaged in real estate development, hospitality and education and leasing along with its subsidiaries and associates.
With a market capitalization of ₹ 354 crores, Kothari Products is a micro-cap company. It has a low return on equity of 0.46% but an ideal debt-to-equity ratio of 0.24. Its shares were trading at a price-to-earnings ratio (P/E) of 23.96 and it has a dividend yield of 1.29%. The company’s promoters hold a 74.99% stake in it, while retail investors hold 25.01%.
In the past three years, the company’s share price increased by 113% to deliver multibagger returns. Thus if an investor had invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 2.13 lakhs today!
Written by Simran Bafna
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