Multibagger stock with 275% returns reports net profit increase of 275% YoY

Shares of Pressman Advertising Ltd shot up 5 percent on Thursday and reached the 52-week high price. Company shares were locked at Rs 128 apiece on the exchange, After the company announced impressive earnings for the period ending on March 31, 2023. 

The company’s net profit increased by 80 percent to  Rs 15.34  crore in Q4FY23 from Rs 8.5 crore in Q4FY22. Additionally, revenue from operations increased by 180  percent to Rs 152 crore from Rs 53.54 crore in the corresponding quarter last year.

The stock has risen by 22 percent over the past five trading days as well as 54 percent in a  month. The company has a market capitalization of Rs 300 crores.

Over a one-year period, the stock has provided multibagger returns of 274.82 percent to its stockholders, with a price from Rs 34.15 to current levels. If the investor invested Rs 1 lakh in the stock, it would have converted to Rs 3.74 lakh within a year.

Pressman Advertising Ltd is engaged in advertising in print media, and public relations businesses and it is the only listed advertising agency in the Indian market. The company caters for private industry and government agencies.

As per consolidated financials, Operating revenue for the company climbed from Rs 53 crores in Q3 to Rs152 crores in Q4. Similar to this, net profit earnings scaled by 265 percent during the same time period, from Rs 4.2 crore to Rs 15.34 crore. 

On a YoY comparison of the metrics, the revenue increased by 94 percent from Rs 168 crores during FY 21-22 to Rs 326 crores in FY 22-23.for the same time frame, and The net profit increased by 275 percent from Rs 8 crores to Rs 30 crores.

The profitability ratios from FY22 to FY23 indicate an upward trend. While ROCE improved from 11.95% to 12.16%, ROE slightly decreased from 10.03% to 9.45%. Additionally, the net profit margin stayed the same at 32% while the operating margin improved from 38.32% to 41.51%.

According to the latest shareholding pattern, promoters of the company hold a 43.09 percent stake, and retail investors have a 56.75 percent stake in the company for FY 22-23.

Written By Omkar C

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