This multibagger stock has delivered 103 percent returns in the past year, as its share price increased from ₹ 41.20 to ₹ 83.47. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.03 lakhs today!
Ashapuri Gold Ornament is engaged in the business of wholesale trading of jewellery.The jewellery is manufactured on a job-work basis at Ahmedabad and Rajkot. The company has fixed Tuesday, July 18, 2023, as the record date for the purpose of sub-division of its equity shares in the ratio of 1:10. Therefore each share having a face value of ₹ 10 each will be divided into 10 equity shares having a face value of ₹ 1 each.
With a market capitalization of ₹ 207 crores, Ashapuri Gold Ornament is a micro-cap company. It has a low return on equity of 2.19 percent and is almost debt free. Its shares were trading at a price-to-earnings ratio (P/E) of 115.32, which is significantly higher than the industry P/E of 27.28, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 62.17 percent stake in it followed by retail investors with 33.51 percent and foreign institutions with 4.32 percent.
Ashapuri Gold Ornament’s revenue from operations stood at ₹ 30.18 crores during Q4FY23, as compared to ₹ 37.63 crores in the corresponding quarter of the previous year. However, its net profit slipped to ₹ 0.02 crores during the quarter that ended on March 31, 2023, as against ₹ 0.34 crores recorded during the same quarter a year ago.
Written by Simran Bafna
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