Shares of this multibagger stock under the ‘small-cap’ category hit an all-time high after acquiring a controlling stake in a Private water & sewage infrastructure company.
With a market capitalization of Rs 4,362.80 crores, the stocks of Welspun Enterprises started their trading session on Tuesday at Rs 314.70 and currently trade at Rs 315.20. Moreover, the company’s stock hit its 52-week/all-time high mark at a price of Rs 318.80.
One of the prime reasons for the company’s stock price to surge today is with regard to the recent filing published with the Bombay Stock Exchange (BSE) dated 21st August 2023.
The company announced that it has successfully completed the acquisition of a controlling stake of 50.10 percent in “Michigan Engineers Private Limited” by way of purchase of equity shares of the private company from Sansaar Housing Finance Limited and Authum Investment & Infrastructure Limited. The equity investment is worth Rs 137.07 crores.
Keeping a purview of one year, the company’s stock has been successful in delivering multibagger returns of 174 percent. The same means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.74 Lakhs within a period of one year.
During the recent quarters, the company’s consolidated financials show a dip in numbers with the operating revenues slipping from Rs 845.08 crores during Q4FY22-23 to Rs 698.73 crores during Q1FY23-24, and, the net profits moving down from Rs 141.48 crores to Rs 91.78 crores.
According to the shareholding data available for the June 2023 quarter, the company’s Promoters hold a 54.53 percent stake, and the Foreign Institutional Investors (FIIs) hold a 3.73 percent stake in the company.
Welspun Enterprises Limited is a company based in India that is engaged in the business of road as well as water infrastructure. The company operates through two broad segments including the ‘Infrastructure’ and ‘Oil & Gas’ segments.
Written by Amit Madnani
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