Madhusudan Kela’s portfolio gains over 1,000 per cent multibagger returns from this small-cap stock; Board announces bonus shares!

The stock gave multibagger returns of over 100 per cent in 1 year and a whopping 1,000 per cent in 3 years.

Today, the Indian stock market ended the day in the red with the BSE Sensex Index down by 1.47 per cent at a level of 70,370 and the NSE Nifty-50 Index down 1.54 per cent at a level of 21,234. On the broader market, the BSE Mid-Cap Index was down by 2.95 per cent and the BSE Small-Cap Index was down by 2.79 per cent.  

Along with the market in red, this multibagger small-cap stock was down by 1.89 per cent to Rs 528.15 per share with an intraday high of Rs 540 and an intraday low of Rs 523.65. The stock’s 52-week high is Rs 564.65 and its 52-week low of Rs 251.10.

The stock name is CHOICE INTERNATIONAL LTD.

Choice International Ltd was incorporated in 1993. It is an integrated and diversified financial services group. It provides a wide range of financial services that include broking & distribution, investment banking, financial services to business advisory, regulatory compliances to government authorities & other corporate entities, retail loan distribution, mutual fund distribution, technical services, and other ancillary services.

The Board of Directors of the company have approved bonus shares on the ratio of 1:1 i.e., 1 new bonus share having a face value of Rs 10 each for every 1 share held by equity shareholders as of record. The company has not fixed the record date for bonus shares yet.  

Additionally, Choice Consultancy Services Pvt Ltd has been granted a work order valued at Rs 17 crore for the digitalization of Primary Agricultural Credit Societies (PACS) in Maharashtra. As a prominent consulting firm and a subsidiary of Choice International Ltd, Choice Consultancy secured this project through a successful bid in response to NABARD's call for proposals. Endorsed by the Office of The Commissioner for Co-operation & Registrar of Cooperative Societies, Maharashtra State, Pune, the initiative aims to digitalize 1983 PACS in districts including Solapur, Latur, Osmanabad, Beed, Nanded, Bhandara, Gondia, Chandrapur, and Gadchiroli.

An ace investor, Madhusudan Murlidhar Kela owns 1,20,00,000 shares or 12.06 per cent stake in the company since March 2022 (Q4FY23). During that time, the stock was at around Rs 50 per share and currently, the stock is trading at Rs 528.15 per share (today’s closing price), therefore his portfolio has gained by 1,000 per cent since investment.

The company has a market cap of over Rs 5,200 crore and has delivered good profit growth of 37.5 per cent CAGR over the last 5 years. The shares of the company have a PE of 43.6x, an ROE of 14 per cent and an ROCE of 16 per cent. The stock gave multibagger returns of over 100 per cent in 1 year and a whopping 1,000 per cent in 3 years.

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