Shares of Raghav Productivity Enhancers gained 9.15% on Monday’s morning trades to reach an intraday high of ₹ 943.90 apiece on the National Stock Exchange (NSE) after another ace investor bought a stake in the company. At 01:29 PM, the shares were trading 4.65% higher at ₹ 904.95 apiece.
According to the shareholding pattern of the company two ace investors already hold a stake in it. Ashish Kacholia holds 2,31,683 shares or a 2.02% stake worth ₹ 20.96 crores. Meanwhile, Mukul Mahavir Agrawal holds 1,78,074 shares or a 1.55% stake that is worth ₹ 16.11 crores.
Recently another ace investor, Rekha Rakesh Jhunjhunwala’s name was included in the list of shareholders who hold more than a one percent stake in the company. Data on the exchanges shows that she has bought 6,00,000 shares in the company or a fresh stake of 5.23 percent. Here holdings were worth approximately ₹ 54.29 crores as of Monday.
Raghav Productivity Enhancers is engaged in the manufacturing of quartz-based ramming mass, quartz powder and tundish board. It sells its products under the brand name ‘Raghav’.
The company’s share price has risen by 60.30% in the past year. In fact, it has given multibagger returns of 293.46% in two years as its share price rose from ₹ 230.00 apiece to the current level. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 3.93 lakhs today!
Moreover, its share price has risen by a whopping 874.53% in the past five years. If an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 9.74 lakhs today!
With a market capitalization of ₹ 992 crores, Raghav Productivity Enhancers is a micro-cap company. It has an ideal return on equity of 20.55% and an ideal debt-to-equity ratio of 0.17. Its shares were trading at a price-to-earnings ratio (P/E) of 41.69, which is significantly higher than the industry P/E of 14.77, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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