Shares of this multibagger stock under the “small cap” category jumped 20 percent in Monday’s trading session after a well-known ace investor increased stake in the company. In the past month, the company’s stock has gained nearly 56.89 percent.
At 12:55 16th October shares of Prakash Pipes Ltd were trading at Rs. 405 per share, up by 20 percent from previous closing price of Rs. 337.60.
Such sharp bullish movements were witnessed after Ms. Dolly Khanna, one of the well-known ace investors based in India increased stake in the company to 3.24 percent from 2.78 percent in the June quarter.
According to data available, Dolly Khanna now owns a total 7.74 lakh shares after buying 1,08,628 lakh shares or 0.46 percent stake in the company.
Keeping a purview of just six months, the company’s stock has delivered multibagger returns of around 165 percent, i.e., if someone had invested Rs 1 lakh six months back, it would have converted to Rs 2.65 lakhs.
Looking at the financial statements, the company’s revenue declined by 8.55 percent to Rs. 175.56 crores in Q1FY23 from Rs.191.98 crores in Q1FY24 in the same time period net profit declined by 26.03 percent to Rs. 18.47 crores from 24.97 crores.
Talking about the profitability ratios, the company reported return on equity (ROE) of 27.74 percent and return on capital employed (ROCE) of 35.07 percent in the last financial year.
Prakash Pipes is involved in the business of manufacturing PVC pipes & fittings and packaging products. It was incorporated in June 2017 created out of a demerger from Prakash Industries Limited.
Written by: Vinit Israni
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