Ashish Kacholia makes a fresh entry in this micro-cap stock; Mukul Agarwal already owns a substantial 9.26 per cent stake!

The stock has delivered multibagger return of 116 per cent in the last one year.

On Monday, the NSE benchmark Nifty50 index started off on a negative note. As the trading session progressed, it reached a new low point of 19,257.90. However, there was a swift recovery in the index from these lower levels. By the end of the day, the index managed to bounce back by about 170 points, closing with a slight gain of 0.03 per cent above the 19,400 level.

An interesting development that emerged after the market closed was related to a micro-cap company with a market capitalization of Rs 304 crore. This company is called Dhabriya Polywood Ltd. It specializes in the production of PVC and UPVC based products used for various building applications both inside and outside structures. The stock of Dhabriya Polywood closed at Rs 281 on the BSE, marking a 2 per cent increase and reaching the highest price limit for the day.

The noteworthy news about this micro-cap company involves a well-known investor who is known for his successful investments in emerging businesses. This investor, Ashish Kacholia, has acquired a 5.05 per cent stake in Dhabriya Polywood at an average price of Rs 280.90. It's worth mentioning that another significant investor, Mukul Agarwal, already owns a substantial 9.26 per cent stake in the company.

In a recent development, Dhabriya Polywood received a work order or Letter of Intent (LOI) from the DLF Group. The order is for the supply and installation of uPVC windows and doors, and it amounts to a total of Rs 9.93 crore, including GST.

Turning to the financial aspect, the company reported a net profit of Rs 3.10 crore in the first quarter of FY24, a notable increase from the Rs 0.65 crore reported in the same quarter of the previous year (FY23). The company's revenue also witnessed a significant YoY increase of 36.42 per cent, reaching Rs 50.19 crore.

The stock has delivered multibagger return of 116 per cent in the last one year. Additionally, it's worth mentioning that the stock is currently in ESM Stage 1.

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