Companies have begun releasing their shareholding patterns for the first quarter of the current financial year (Q1FY24). Many investors are closely tracking the changes in the shareholding of seasoned investors like Vijay Kedia.
Shares of Precision Camshafts gained 17.81 percent on Friday’s trades to reach an intraday high of ₹ 215.00 apiece. This happened after Vijay Kedia increased his stake in the company. At 12:06 PM, its shares were trading at ₹ 213.00 apiece, up 16.71 percent.
The shareholding pattern of the company for the latest quarter (Q1FY24) shows that Vijay Kedia holds 11,00,000 shares or a 1.16 percent stake in it. However, he held 10,00,000 shares or a 1.05 percent stake in the company as of the March quarter of the financial year (Q4FY23). This means that the ace investor has increased his stake in the company by 0.11 percent.
Precision Camshafts manufactures and supplies camshafts in India and globally. It supplies more than 150 varieties of camshafts for light commercial vehicles, locomotive engine applications, passenger vehicles and tractors.
With a market capitalization of ₹ 1,733 crores, Precision Camshafts is a small-cap stock. It has a low return on equity of 6.62 percent but an ideal debt-to-equity ratio of 0.15. Its shares were trading at a price-to-earnings ratio (P/E) of 37.53, which is lower than the industry P/E of 43.47, indicating that the stock might be undervalued as compared to its peers.
Currently, the company’s promoters hold a 65.37 percent stake in it, followed by retail investors with 34.60 percent and foreign institutions with 0.03 percent.
In the past six months, the company’s share price increased by 103 percent to deliver multibagger returns. Therefore if an investor had invested ₹ 1 lakh in the company’s shares six months ago, the value of their holdings would have been ₹ 2.03 lakhs today!
Written by Simran Bafna
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