Ashish Kacholia sells 3,44,483 shares of this auto company; do you own it?

The stock is up by 20 per cent in 3 months and 70 per cent in 6 months.

On Thursday, the benchmark indices ended the day in red. BSE Sensex Index is down by 0.57 per at 65,500 and the NSE Nifty-50 Index is down by 0.55 per cent at 19,564. About 1,489 shares have advanced, 1,903 have declined and 172 were unchanged on BSE.

An ace investor, Ashish Kacholia sold 1.01 per cent or 3,44,483 shares of this auto company in the September quarter (Q2FY24). Before divesting, he possessed a 4.34 per cent ownership in the company, but following the sale of a 0.6 per cent stake, his current ownership in the company stands at 3.23 per cent.

Kacholia's decision to sell his part shares raised concerns among investors about the company's future. Could this have been a signal that the stock had reached an overhyped valuation, and its merry run might have been coming to an end?

The shares of the company were trading in the red, down 0.50 per cent to Rs 689.75 per share from its previous closing of Rs 693.20. The stock traded at an intraday high of Rs 692.55 and an intraday low of Rs 682.85.

The stock name is S.J.S. Enterprises Ltd.

SJS Enterprises Ltd (SJS) is one of the leading players in the Indian decorative aesthetics industry in terms of revenue. It offers a design-to-delivery aesthetics solutions provider with the ability to design, develop and manufacture a diverse product portfolio for a wide range of customers primarily in the automotive and consumer appliance industries.

According to the Quarterly Results, the net sales increased by 13.59 per cent to Rs 117 crore and net profit increased by 12.5 per cent to Rs 18 crore in Q1FY24 over Q1FY23. According to the annual results, the net sales increased by 17.03 per cent to Rs 433 crore and net profit increased by 21.82 per cent to Rs 18 crore in FY23 over FY22.

The stock is currently trading at a PE of 32.5 whereas the industry PE is 31.3 and an ROE of 15.2 per cent & a ROCE of 20 per cent. The EPS is Rs 19.31 per share. The stock is up by 20 per cent in 3 months and 70 per cent in 6 months.  

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