2700 per cent multibagger returns and FIIs & DIIs increase stake; Board announces 1:1 bonus share!

The stock gave multibagger returns of 225 per cent in 3 years and a whopping 2,700 per cent in a decade.

Gujarat Ambuja Exports Ltd.'s Board of Directors has approved a 1:1 bonus share issuance. This means that for every existing fully paid-up equity share with a face value of Rs 1, shareholders will receive one new fully paid-up bonus equity share also with a face value of Rs 1. The issuance is subject to shareholder approval. The company fixed the record date for bonus shares as Saturday, March 16, 2024.  

Established in 1991, Gujarat Ambuja Exports Ltd. (GAEL) is a leading agro-processing company in India, specializing in corn starch derivatives, soy derivatives, feed ingredients, cotton yarn, and edible oils. Their core business lies in maize processing (65 per cent), where they hold a dominant position with a 20 per cent domestic market share and a capacity of 4,000 TPD. Additionally, they are involved in agro-processing (39 per cent) encompassing maize, soya, wheat, and edible oils, and maintain a smaller cotton yarn division (1 per cent). Notably, GAEL boasts an impressive clientele list including Dabur, Mondelez, Nestle, and Colgate, among others.

Capex aims to strengthen its position in the profitable maize processing sector by increasing capacity from 4,000 to 6,000 tonnes per day by 2025, including a new 900 TPD facility in Gujarat. They are also investing Rs 1,000 crore over 5 years in starch fermentation for improved margins, with a product launch planned for FY25. Their total 5-year capex plan stands at Rs 1,700 crore, primarily focused on maize processing expansion and the fermentation venture. Strategically, their existing maize processing plants are in key maize-growing areas, and they've recently become India's largest sorbitol manufacturer following the commissioning of a new unit.

Today, the shares of Gujarat Ambuja Exports Ltd gained 0.84 per cent to Rs 404 per share from its previous closing of Rs 400.65 with an intraday high of Rs 412.05 and an intraday low of Rs 399. The stock has a 52-week high of Rs 420.75 and a 52-week low of Rs 224.20.

Talking about the financials, GAEL has a market cap of over Rs 9,000 crore with a 3-year stock price CAGR of 44 per cent. The company reported positive numbers in its Quarterly Results and annual results. In Q3FY24, net sales rose by 15 per cent and net profit rose by 23 per cent compared to Q3FY23.

The stock gave multibagger returns of 225 per cent in 3 years and a whopping 2,700 per cent in a decade. Investors should keep this Mid-Cap multibagger stock under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.