Stock Tripled From 52-week Low of Rs 52.01 Per Share: Multibagger Small-Cap Stock Hit Upper Circuit & 52-Week Highs On September 30
The stock gave multibagger returns of 300 per cent from its 52-week low of Rs 52.01 per share in just 6 months and a whopping 2,145 per cent in 5 years.
The stock market experienced a downturn today, with both the BSE Sensex and NSE Nifty-50 Index declining by over 0.85 per cent. Despite this overall bearish trend, Shanti Educational Initiatives Ltd (SEIL) bucked the market sentiment, surging by 5 per cent to reach a new 52-week high of Rs 207.75 per share. This stock has consistently set new 52-week highs in recent trading sessions. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.
Earlier, Shanti Educational Initiatives Limited strategically expanded its business by acquiring a controlling stake in Uniformverse Private Limited. This investment of up to Rs 1 crore will increase Shanti's shareholding to over 50 per cent, making Uniformverse a subsidiary. The acquisition aligns with Shanti's strategic goals of expanding its business and capitalizing on synergies in the school uniform market. In addition to this, recent block deals have seen Albula Investment Fund Ltd and Legends Global Opportunities (Singapore) Pvt Ltd acquiring shares in Shanti Educational Initiatives Limited on the BSE. Albula Investment Fund Ltd purchased 47,20,190 shares at Rs 123 per share, while Legends Global Opportunities (Singapore) Pvt Ltd acquired 17,15,000 shares at Rs 114.20 per share.
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.
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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.
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 1.53 crore. Additionally, the company has a healthy market cap of Rs 3,285 crore and working capital requirements have been reduced from 70.8 days to 51.0 days
The stock gave multibagger returns of 300 per cent from its 52-week low of Rs 52.01 per share in just 6 months and a whopping 2,145 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.