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Back-to-back upper circuit: This small-cap multibagger stock has delivered 180 per cent in just 1 year, do you own it?
Rakesh Deshmukh

Back-to-back upper circuit: This small-cap multibagger stock has delivered 180 per cent in just 1 year, do you own it?

The company's shares have delivered an impressive return of over 50 per cent to their shareholders in the past 3 months only.

Incorporated in 2009, Kapston Services Ltd provides facility management and staffing services. Today the company experienced a significant surge in its share price. 

At the start of the day's trading session, the stock opened at Rs 350 per share, compared to the previous day's closing figure of Rs 333.40 per share on the NSE. As of the time of writing this article, the shares are currently at Rs 366.70 per share on the NSE. The stock has reached the upper circuit price limit of 10 per cent, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers. The company's stock has continuously hit the upper circuit since May 10 after announcing its Quarterly Results, which were released on May 9, 2024. 

The company's current market capitalization stands at Rs 372 crore, and the stock has generated an impressive multibagger return of around 180 per cent in the past year.

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Financial Performance of Kapston Services Limited

In FY24, Kapston Services Limited reported sales of Rs 520 crore rupees, reflecting a notable increase from the Rs 399 crore rupees reported in March 2023, marking a year-on-year sales growth of 30.40 per cent. The company's operating profit grew from Rs 14 crore in March 2023 to Rs 23 crore. This resulted in an increase in the operating profit margin from 3 per cent to 4 per cent over the same period. Similarly, the net profit showed a positive trend, rising from Rs 5 crore in March 2023 to Rs 13 crore.

Business Overview of Kapston Services Limited

Kapston Services Limited is an India-based company primarily engaged in providing staffing, private security services, and facilities management services across the country. It operates through the facility management & staffing services segment. The company is a provider of various manpower solutions, including general staffing, security services, integrated facilities management services, and information technology (IT) staffing services as per clients' requirements. It offers comprehensive housekeeping services for office spaces, residential apartments, public areas, malls, and more. Its soft services include housekeeping, pest control, facade cleaning, landscape, and gardening. Its pest control services encompass termite control, mosquito control, rat control, flies’ control, roach control, and others. It serves various segments, including IT/information technology-enabled services, manufacturing, pharma, e-commerce and logistics, hospitality, and others. 

Investors must keep this Small-Cap multibagger stock on their radar.

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

DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.

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