Multibagger alert: This small-cap company from the industrial equipment space has delivered nearly 500% returns in two years!

Multibagger alert: This small-cap company from the industrial equipment space has delivered nearly 500% returns in two years!

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-11-07T17:02:53+05:30

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 5.83 lakh today.

Kabra Extrusiontechnik 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 77 on 04 November 2020 to Rs 448.90 on 04 November 2022, an increase of 483% in the two-year holding period. Meanwhile, the S&P BSE SmallCap index, of which the company is a part, surged 95.5%, climbing from the level of 14,883.19 on 04 November 2020 to 29,107.24 on 04 November 2022.

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 5.83 lakh today.

Kabra Extrusiontechnik Ltd (KET), a part of Kolsite Group is a leading manufacturer of plastic extrusion machinery in India. KET offers a wide range of hi-tech single and twin screw extrusion lines for pipes, profiles, pellets, teleduct and mono & multilayer blown film plants. The company has over four decades of rich experience in the plastics industry.

In the recent quarter Q2FY23, on a consolidated basis, the company’s net revenue increased by 116.65% YoY to Rs 180 crore. Owing to a steeper growth in expenses, the bottom line increased at a relatively slower rate, i.e., by 41.50% YoY to Rs 9.47 crore.

The company is currently trading at a TTM PE of 41.62x against the industry PE of 36.31x. In FY22, the company delivered an ROE & ROCE of 9.97% and 13.4%, respectively. The company is a constituent of Group A stocks and commands a market capitalization of Rs 1,454.31 crore.

Today, the scrip opened at Rs 452.40 and has touched a high and low of Rs 457.05 and Rs 446.10, respectively. So far 11,982 shares have been traded on the bourses.

At 2.13 pm, the shares of Kabra Extrusiontechnik Ltd were trading at Rs 457.10, an increase of 1.83% from the previous day’s closing price of Rs 448.90 on BSE. The stock has a 52-week high & low of Rs 566.40 and Rs 239 respectively on BSE.

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