Micro-cap gem hits upper circuit: Dheeraj Lohia increases stake in low P/E stock as company holds reserves exceeding 50 per cent of m-cap!

The company reported an operating profit of Rs 6.80 crore, marking its highest point in several quarters. The net profit, mirroring this upward trajectory, surged to a remarkable Rs 4.50 crore—an achievement unparalleled in recent history.

In the riveting world of stock markets, where every quarter brings forth a cascade of revelations, the latest update on the shareholding pattern for the quarter ended December 31, 2023, has unleashed a wave of intrigue. Among the myriad names dancing in the spotlight, one that has gracefully pirouetted to attention is none other than B&A Packaging India Ltd.

Domiciled in the vibrant city of Kolkata, West Bengal, with its manufacturing prowess emanating from a factory nestled in Balasore, Orissa, B&A Packaging India Ltd is a stalwart in the domain of paper sacks and flexible laminates. The company's narrative took an exhilarating turn on Friday when its stock, in a triumphant display, soared to an upper circuit limit, embellishing itself at Rs 230.75—a spirited ascent of Rs 10.95 per share, or nearly 5 per cent.

However, the real spectacle unfolds in the intricate tapestry of shareholding patterns. Here, the micro-cap ace investor Dheeraj Kumar Lohia emerges as a protagonist, subtly tweaking their stake in the company from 1.39 per cent to a marginally elevated 1.40 per cent. The maestro's presence in the shareholder lineup, with holdings exceeding the 1 per cent threshold, has been a steady phenomenon since the quarter ending September 2021, where they initially graced the stage with a 1.12 per cent stake. Since then, in a finely choreographed progression, the stake has gracefully waltzed its way to 1.40 per cent in the most recent update.

As we turn the spotlight on the performance of B&A Packaging India Ltd, the numbers tell a tale of triumph. Over the last twelve months, the stock has advanced by an impressive 15.29 per cent. Zooming in on the last quarter, the ascent becomes even more dazzling, with a meteoric rise of 16.28 per cent.

Venturing into the financial arena, Q2FY24 reveals a spectacular display of financial prowess. The company reported an operating profit of Rs 6.80 crore, marking its highest point in several quarters. The net profit, mirroring this upward trajectory, surged to a remarkable Rs 4.50 crore—an achievement unparalleled in recent history.

Delving into the financial anatomy of the company, the market cap stands at a robust Rs 114 crore, harmonizing with a modest PE ratio of 13.6x. Adding to this financial symphony is a substantial reserves of Rs 64 crore gracing the balance sheet. As a delightful encore, the stock offers investors a sweet melody in the form of a dividend yield of 0.65 per cent.

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