Multibagger alert: Investors of this ice cream company have gained delightful returns in the last two years!

Multibagger alert: Investors of this ice cream company have gained delightful returns in the last two years!

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-09-26T12:40:49+05:30

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 3.18 lakh today.   

Vadilal Industries Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 789.05 on 29 September 2020 to Rs 2510.05 on 23 September 2022, an increase of 218% in the two-year holding period. 

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 3.18 lakh today. 

Vadilal Industries Limited is one of the leading food & beverage companies. The company is engaged in the business of manufacturing ice cream, flavoured milk, frozen dessert, and other dairy products and processing & exporting processed food products such as frozen fruits, vegetables, pulp, ready-to-eat and ready-to-serve products etc. 

The company has two ice-cream production facilities - one in Gujarat and the other in Uttar Pradesh. The processing of frozen fruits, vegetables and processed foods takes place at the Gujarat facility. Further, the company exports its products to various countries. 

In the recent quarter Q1FY23, on a consolidated basis, the company’s net revenue increased by 135.16% YoY to Rs 391.19 crore. Owing to a relatively slower rise in expenses, subsequently, the bottom line increased by 289.39% YoY to Rs 49.46 crore. 

The company is currently trading at a TTM PE of 22.15x against the industry PE of 62.31x. In FY22, the company delivered an ROE & ROCE of 22.4% and 23.3%, respectively. 

Today, the scrip opened at Rs 2493.80 and has touched a high and low of Rs 2496.85 and Rs 2423.35, respectively. So far 368 shares have been traded on the bourses. 

At 11.52 am, the shares of Vadilal Industries Ltd were trading at Rs 2435.85, a decrease of 2.96% from the previous closing price of Rs 2510.05 on BSE. The stock has a 52-week high & low of Rs 2,857.75 and Rs 827.30, respectively on BSE. 

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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