This micro-cap multibagger stock hit an all-time high on June 8!

This micro-cap multibagger stock hit an all-time high on June 8!

by 5paisa Research Team Last Updated: Jun 08, 2022, 01:56 PM IST

In the last 8 quarters, the company’s sales have grown over 400%, whereas the net profit has turned around from a loss of Rs 5.3 crore in the June 2020 quarter to a profit of Rs 1.6 crore in the recent quarter March 2022.

Indrayani Biotech Limited (IBL), a micro-cap company which works in business aggregation, has generated multibagger returns for its investors in the last couple of years. Indrayani Biotech Limited is diversified into the following segments- Biotech, Food & Hospitality, Infrastructure, Agro, Engineering and Healthcare. It is continuously working on developing and implementing unique & innovative business models.

An investment of Rs 1 lakh in this company’s shares last year would have turned to Rs 3.6 lakh today, whereas, the same amount invested two years ago would have turned to Rs 4.9 lakh today. In contrast, S&P BSE Sensex climbed only 5.4% in the last 1 year and 60.3% in the last 2 years.

Today, the company’s share price rallied to Rs 41.20 on BSE, registering a fresh 52-week high, which is also its all-time high on the bourses. Its 52-week low stands at Rs 8.42. Looking at the recent developments, on 2nd June 2022, two of the company's wholly-owned subsidiary companies- “IBL Healthcare Private Limited” and “HSL Agri Solutions Private Limited” got converted into Public Limited. Post conversion, the two companies are now renamed as “IBL Healthcare Limited” and “HSL Agri Solutions Limited,” respectively.

Last week, the company announced its results for the quarter & year ended 31 March 2021. Within the last 4 quarters, on a consolidated basis, the company’s net revenue in Q4FY22 grew 140% YoY to Rs 17.24 crore. Similarly, the PAT went from a loss of Rs 3.24 crore in Q4FY21 to Rs 1.6 crore in Q4FY22.

Like the majority of the businesses, IBL was affected adversely when the pandemic struck. As the restrictions eased, the company’s business started gaining pace. Looking at the last 8 quarters, the company’s sales have grown over 400%, whereas the net profit has turned around from a loss of Rs 5.3 crore in the June 2020 quarter to a profit of Rs 1.6 crore in the recent quarter March 2022.

The company is currently trading at a TTM PE of 32.63x, as against the industry PE of 46.26x. In FY22, the company delivered an ROE & ROCE of 18.38% and 20.46%, respectively.

At 1.27 pm, the shares of Indrayani Biotech Ltd were trading at Rs 40.50, an increase of 1.63% from the previous day’s closing price of Rs 39.85 on BSE. Its market cap stands at Rs 139.48 crore.

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