Shares of a company in ace investor Mukul Agrawal’s portfolio climbed 3.59 per cent to reach an intraday high of ₹ 976.00 apiece on the National Stock Exchange (NSE) after the company announced a 1:2 stock split. Its shares were trading at ₹ 990.75 apiece at 10:32 AM.
Surya Roshni Ltd. is a lighting and steel pipes manufacturer. Its products include steel pipes, steel strips, lighting and consumer durables. It has manufacturing facilities in Kashipur (Uttarakhand) and Malanpur (Madhya Pradesh).
“The Company has fixed Friday, 6th October, 2023 as the record date, for the purpose of ascertaining the eligibility of shareholders entitled for Subdivision of One (1) Equity Share of face value of Rs. 10/- each fully paid up into 2 (two) equity shares of face value of Rs. 5/- each fully paid-up,” as per an exchange filing by the company.
Mukul Agrawal holds 10 lakh shares or a 1.84 per cent stake in the company. His holdings are worth ₹ 99.07 crores as per the company’s current share price.
The company’s share price gained 121.89 per cent from ₹ 446.50 to ₹ 990.75 apiece in a span of eleven months to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares eleven months ago, the value of their holdings would have been ₹ ₹ 2.19 lakhs today!
In fact, the company’s shares have delivered multibagger returns of a whopping 392.30 per cent in a span of three years, as its share price increased from ₹ 201.25 to 990.75 apiece. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 4.92 lakhs today!
With a market capitalization of ₹ 5,317 crores, Surya Roshni is a small-cap company. It has an ideal return on equity of 21.96 per cent and an ideal debt-to-equity ratio of 0.22. Its shares were trading at a price-to-earnings ratio (P/E) of 14.28, which is lower than the industry P/E of 23.32, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 62.96 per cent stake in it, followed by retail investors with 32.16 per cent, foreign institutions with 4.87 per cent and domestic institutions with 0.01 per cent
Written by Simran Bafna
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