Shares of this multibagger stock under the ‘micro-cap’ category jumped approximately 3 percent after Mr. Mukul Agrawal bought a fresh stake in the company during the December 2023 quarter.
With a market capitalization of Rs 969.05 crores, the stocks of Prakash Pipes Limited started their trading hour on Thursday at Rs 396.85 and currently trade at Rs 405.15, gaining around 3 percent as compared to the previous close of Rs 395.15 apiece.
Such bullish stock price movements were observed after Mr. Mukul Agrawal, one of the well-known ace investors based in India, bought a fresh stake in the company.
As per the latest shareholding data of the ace investor for the quarter ended December 2023, he bought 6 lakh shares equating to a 2.51 percent stake in the company.
Coming onto the recent financial quarters, the company reported opposing movements in the prime indicators of business such as operating revenues and net profits.
The former, on one end, dipped from Rs 175.56 crores during Q1FY23-24 to Rs 170.86 crores during Q2FY23-24, and, the latter, on the other end, rose from Rs 18.47 crores to Rs 22.67 crores as a result of efficient cost management.
In addition, the company’s basic profitability ratios went up with the return on equity (RoE) jumping from 21.93 percent during FY21-22 to 27.74 percent during FY22-23, and the return on capital employed (RoCE), in congruence, rose from 32.12 percent to 35.07 percent.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of around 147 percent to its shareholders, viz, if someone had invested Rs 1 lakh a year ago, it would have converted to Rs 2.47 lakhs.
The latest shareholding pattern data of the company portray the company’s Promoters holding a 44.27 percent stake, and the Public (retail) investors holding a 55.44 percent stake in the company.
Founded in 1981, Prakash Pipes Limited is engaged in the business of manufacturing and supplying PVC pipes & fittings, and other packaging products within as well as outside India. The company offers unplasticised PVC (uPVC) pipes as well as flexible packaging products including barrier films and laminates.
Written by Amit Madnani
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