This Microcap stock has moved up ~66% since March 2023, and hit 20% upper circuit on Wednesday close to an hour after markets opened after the holiday. Reported results for Q1 FY24 late on Monday were more than outstanding. The stock is supported by strong community sentiment and volumes driving momentum toward its 52 week high, which is just 6% away from the current price.
Shervani Industrial Syndicate Ltd (“Shervani”) reported ~3333% YoY increase in revenue from Rs. ~2.14 crores to Rs. ~73.47 crores. Net profits grew at a staggering ~8763% YoY from Rs. ~0.24 crore to Rs. ~21.27 crore. EBITDA growth was also impressive to say the least, at ~6917% growth YoY from Rs. ~0.3 crore to Rs. ~20.45 crore. The stock trades ~22.9% above the 20 day moving average and ~32.2% above 200 day moving average.
Shervani was locked in at Rs. 493.30, up Rs. 82.20 today. The stock has a low P/E of 4.73 and P/B of 0.77 compared to the industry average and in its market cap range relative to its earnings and an impressive P score of 7 that further reinforces the fundamentally strong status. Shervani is a multibagger, returning ~134% in the last 1 year period, meaning, if you invested Rs. ~1 lakh into it a year ago, it would now be worth Rs. ~2.34 lakh!
The company has stable shareholding over the last 4 quarters with promoters holding ~60%, and the remaining being in public float domain. Promoter pledge has been nil for the stated observation period and the stock has no short interest. Shervani gives positive signals through increasing cash EPS and debt to equity reducing consistently on a QoQ basis.
Shervani engages in real estate business in India. It is involved in building housing projects, apartments and infrastructure facilities. Shervani also manufactures (~350 tons p.m.) and sells biscuits under its Priyagold brand. The company is based in Allahabad, India and was incorporated in 1948.
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