As a part of the rally seen by the Indian equity markets, there are a huge bunch of stocks that have seen tremendous growth due to various factors such as increasing orders, joint ventures, etc leading to increasing sales and, thus, increasing profits.
Listed below are three stocks under the ‘small-cap’ category that gave multibagger returns on up to 480 percent during Q2FY23-24, i.e., quarter ended September 2023:
Premier Explosives Limited
With a market capitalization of Rs 1,081.68 crores, the stocks of Premier Explosives Limited, engaged in commercial as well as defence explosives, closed at Rs 1,006 on Friday, slipping around 2.20 percent as compared to the previous closing levels of Rs 1,028.85 apiece.
From the quarter that ended in June 2023, the stock gave multibagger returns of around 133 percent during Q2FY23-24, i.e., if someone had invested Rs 1 lakh into the company’s stock during the start of the second quarter, it would have converted to Rs 2.33 lakhs within a period of roughly three months.
The rally in the company’s stock price is seen after receiving various orders and continuous support from the ‘Defence’ sector by way of providing supply orders, some of which include orders for supply of MTV Flares it got from the Ministry of Defence, New Delhi a couple of months back.
Having a look at the financials, the company outperformed by increasing its sales as well as net profits during the recent financial quarters with the former increasing from Rs 52 crores during the March 2023 quarter to Rs 61 crores during June 2023 quarter, and, the net profits, during the same time period, rose four-fold from Rs 2 crores to Rs 8 crores.
Mafatlal Industries Limited
With a market capitalization of Rs 1,007.33 crores, the stocks of Mafatlal Industries Limited, operating in the textile and denim business units, closed at Rs 142.45 on Friday, slipping around 0.25 percent as compared to the previous closing levels of Rs 142.80 apiece.
From the quarter that ended in June 2023, the stock gave multibagger returns of around 134 percent during Q2FY23-24, i.e., if someone had invested Rs 1 lakh into the company’s stock during the start of the second quarter, it would have converted to Rs 2.34 lakhs within a period of roughly three months.
The rally in the company’s stock price is seen after it executed large tenders from various state governments and the same constitutes to more than 70 percent of the company’s operating revenue.
Having a glance at the financials, the company outperformed by increasing its sales as well as net profits during the recent financial quarters with the former increasing from Rs 338 crores during the March 2023 quarter to Rs 585 crores during June 2023 quarter, and, the net profits, during the same time period, more than doubled from Rs 11 crores to Rs 27 crores.
Jai Balaji Industries Limited
With a market capitalization of Rs 6,839.04 crores, the stocks of Jai Balaji Industries Limited, an iron and steel manufacturing company based in India, closed at Rs 439.95 on Friday, gaining around 5 percent as compared to the previous closing levels of Rs 419.30 apiece.
From the quarter that ended in June 2023, the stock gave multibagger returns of around 480 percent during Q2FY23-24, i.e., if someone had invested Rs 1 lakh into the company’s stock during the start of the second quarter, it would have converted to Rs 5.80 lakhs within a period of roughly three months.
The rally in the company’s stock price is seen after the company investors discount the future business prospects. The company, in its recent annual report for FY22-23, mentioned about an increase in exports of steel products post withdrawal of export duties on products of such category.
Having a walkthrough of the financials, the company has successfully managed to increase its sales as well as net profits on a YoY basis with the former increasing from Rs 4,643 crores during the year ended March 2022 to Rs 6,125 crores during the year ended March 2023, and, the net profits, during the same time period, rising from Rs 48 crores to Rs 57 crores.
Written by Amit Madnani
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