Shares of this multibagger metal stock hit the 5 percent upper circuit in Tuesday’s trading session after the company posted an earnings report for Q2FY23-24.
With a market capitalization of Rs 256 crores, the stocks of Dhatre Udyog Limited started their trading session on Tuesday at Rs 234.90 and went on to hit the 5 percent upper circuit at Rs 234.95. The locked price also exhibits the company’s fresh 52-week high mark.
Such sharp movements in the stock prices were observed after the company, through a regulatory filing with the exchange, announced the earnings report for the quarter ended September 2023.
Comparing Q2FY23 v/s Q2FY24, the company reported an increase in both the basic business parameters such as operating revenues and net profits. The former moved up from Rs 14.65 crores to Rs 38.92 crores, and, the latter shifted from Rs 1.20 crores to Rs 1.92 crores.
Comparing H1FY23 v/s H1FY24, the company, in congruence with the pattern above, showed positive movements in the metrics mentioned above with the operating revenues going up drastically from Rs 19.75 crores to Rs 79.27 crores indicating an increase of around 300 percent, and, the net profits increasing from Rs 2.51 crores to Rs 3.92 crores.
Keeping a purview of just six months, the company’s stock has delivered multibagger returns of approximately 176 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.76 lakhs.
During the recent financial quarters, the company has successfully been able to manage its sales at levels of Rs 40 crores and report net profits of around Rs 2 crores in the past few periods.
With a negligible debt-to-equity ratio of 0.02, the company reported decent profitability numbers with a return on equity (RoE) at 13.34 percent and a return on capital employed (RoCE) at 16.35 percent.
According to the shareholding pattern data available for the quarter ended September 2023 quarter, the company’s Promoters hold a 90.01 percent stake followed by the Public (retail) investors holding the remaining 9.99 percent stake in the company.
Incorporated in 1996, Dhatre Udyog Limited is engaged in the business of manufacturing, trading, and selling iron, steel, and other associated products in India. The company offers TMT bars, wire rod coils, MS-grade angels, flats, etc.
Written by Amit Madnani
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