1,800 per cent returns: This multibagger electrical equipment stock to pay bonus shares after Rs 10/share dividend; Ex-date tomorrow!

The shares of the company have a PE of 22.6x, an ROE of 42.8 per cent and an ROCE of 53.8 per cent with multibagger returns of 445 per cent in just 1 year.

The Indian stock markets were in green today, with the benchmark indices Sensex and Nifty trading higher. The Sensex gained 0.09 per cent at 65,683, while the Nifty is up by 0.06 per cent at 19,540. About 2, shares have advanced, 1,439 have declined, and 197 were unchanged on BSE.
Today, shares of Shilchar Technologies Ltd plunged 1.46 per cent to Rs 3,181 per share from its previous closing of Rs 3,228.05. The stock's 52-week high stands at Rs 3,437, while its 52-week low is Rs 562.

The Board of Directors of Shilchar Technologies Ltd recommended a bonus issue of equity shares in the ratio of 1:1 i.e., 1 new equity share of Rs 10 each for every 1 existing equity share of Rs 10 each held by the company's shareholders as of the record date, subject to shareholder approval. The company set the record date for bonus shares as Wednesday, September 06, 2023.

Earlier, the company previously declared a final dividend of Rs 10 per share which ex-traded on August 08, 2023.

Shilchar Technologies is engaged in the business of manufacturing electronics and telecom and power and distribution transformers. The company has recently ventured into the manufacturing of Ferrite transformers. Talking about the financials, this civil construction company has a market cap of over Rs 1,200 crore.

Furthermore, according to the Quarterly Results, the net sales increased by 17.54 per cent to Rs 67 crore and the net profit skyrocketed by 167 per cent to Rs 10 crore in Q1FY24 compared to Q1FY23. The company also reported excellent numbers in its annual results (FY23) and has delivered good profit growth of 49.0 per cent CAGR over the last 5 years.

The shares of the company have a PE of 22.6x, an ROE of 42.8 per cent and an ROCE of 53.8 per cent. The stock gave multibagger returns of 445 per cent in just 1 year, 1,435 per cent in 2 years and a whopping 1,800 per cent returns in 3 years. Investors should keep this multibagger Small-Cap stock under the radar. 

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