Back-to-back 52-week highs in this multibagger stock under Rs 130 after the company reported turnaround net profit in its quarterly results (Q1FY25)
From Rs 52.01 to Rs 124 per share, the stock gave multibagger returns of over 130 per cent from its 52-week low and a whopping 1,100 per cent in 5 years.
Today, one of the Top Gainers on BSE, shares of Shanti Educational Initiatives Ltd (SEIL) gained 14.56 per cent and made a fresh 52-week high of Rs 124 per share with a spurt in volume by more than 1.01 times from its previous closing of Rs 108.24. In the recent trading sessions, the stock has been hitting back-to-back 52-week highs.
Shanti Educational Initiatives Ltd (SEIL), a division of the Chiripal Group based in Ahmedabad, India, offers a comprehensive range of educational services. Their network includes Shanti Asiatic Schools, operating in multiple cities with over 25,000 K-12 students enrolled, and Shanti Juniors, a chain of over 300 preschools across 74+ cities. In 2013, SEIL launched Shanti's Hopskotch Preschool, catering to parents seeking a premium preschool experience with a global learning approach and a clean environment.
According to Quarterly Results, the net sales increased by 239 per cent to Rs 9.83 crore in Q1FY25 compared to Rs 2.90 crore in Q4FY24. The company reported a turnaround story with an operating profit of Rs 3.94 crore and a net profit of Rs 3.09 crore in Q1FY25 compared to an operating loss of Rs 2.41 crore and a net loss of Rs 1.09 crore in Q4FY24, an increase of 263 per cent and 384 per cent, respectively. In its annual results, net sales increased by 73.3 per cent to Rs 19.05 crore and net profit increased by 8.3 per cent to Rs 3.65 crore in FY24 compared to FY23.
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Shanti Educational Initiatives Ltd (SEIL) has approved the sale of its entire stake in Shanti Learning Foundation to unrelated parties in February 2024. The subsidiary, which generated no revenue or income last year and has minimal net worth, is being sold for Rs 1,00,000. While sale agreements are planned for February 2024, the transaction's completion is expected by February 27, 2024, or a mutually agreed-upon date.
The company is in a very strong financial position with minimal debt, indicated by its debt-to-equity ratio of only 0.01, which means its debt is just a fraction of its equity. This is further emphasized by the low debt figure of just Rs 1.57 crore. Additionally, the company has a healthy market cap of over Rs 1,900 crore and working capital requirements have reduced from 70.8 days to 51.0 days
From Rs 52.01 to Rs 124 per share, the stock gave multibagger returns of over 130 per cent from its 52-week low and a whopping 1,100 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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