Shares of this small-cap cylinder manufacturing company propelled nearly 300% in the last two years!

Shares of this small-cap cylinder manufacturing company propelled nearly 300% in the last two years!  | 5Paisa|

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-09-28T13:07:59+05:30

Meanwhile, the S&P BSE SmallCap index, of which the company is a part, delivered returns of 87.51%. 

Everest Kanto Cylinder Ltd, an S&P BSE SmallCap company, has delivered stellar returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 28.35 on 30 September 2020 to Rs 110.60 on 27 September 2022, an increase of 290% 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 3.9 lakh today. Meanwhile, the S&P BSE SmallCap index, of which the company is a part, delivered returns of 87.51%. 

Established in 1978, Everest Kanto Cylinder Ltd is a leading manufacturer of seamless steel gas cylinders. With a corporate office in Mumbai, the company has three manufacturing plants located in Tarapur and Kandla SEZ in India and JAFZA in Dubai. Its product portfolio includes (but is not limited to) CNG steel cylinders, industrial gas cylinders, medical application cylinders, etc. 

In the recent quarter Q1FY23, on a consolidated basis, the company’s net revenue increased by 13.58% YoY to Rs 380.53 crore. However, owing to a steeper rise in expenses, the bottom line declined 43.99% YoY to Rs 38.70 crore. 

The company is currently trading at a TTM PE of 5.29x against the industry PE of 33.96x. In FY22, the company delivered an ROE & ROCE of 34.5% and 41.6%, respectively. 

Today, the scrip opened at Rs 108.10 and has touched a high and low of Rs 112.90 and Rs 108.10, respectively. So far 11,367 shares have been traded on the bourses. 

At 11.21 am, the shares of Everest Kanto Cylinder Ltd were trading at Rs 112.15, an increase of 1.40% from the previous day’s closing price of Rs 110.60 on BSE. The stock has a 52-week high & low of Rs 291.15 and Rs 107.90, 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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