Dheeraj Lohia’ stock locked at upper circuit: Gained Rs Rs 81,10,505 in just a single trading session; check the business model of the company!

Dheeraj Kumar Lohia revealed his strategic play, holding 3,73,756 shares of Emmbi Industries Ltd as of December 2023

In the bustling realm of the stock market, where indices sway like dancers in the financial wind, the NSE benchmark Nifty 50 index showcased a day of twists and turns. After a dip, it resiliently recovered almost 100 points, closing the day at 21,353—a mere 0.47 per cent decrease. Amidst this financial spectacle, sectors took center stage, with Nifty Energy and Realty emerging as the day's heroes, while Nifty IT and Pharma played the role of unfortunate protagonists.

Delving into the broader market narrative, the Nifty Small-Cap index stole the spotlight by outperforming its counterparts, closing the day with a 0.50 per cent gain. However, the true star of the show was Emmbi Industries Ltd, a stock that soared to new heights, literally and figuratively, hitting an upper circuit of almost 20 per cent.

As the closing bell rang, Emmbi Industries Ltd stood tall at Rs 130.25, marking a fresh 52-week high. The day's intrigue unfolded as the stock opened at Rs 114—the same figure that served as both the day's low and the opening level. A dramatic ascent ensued, culminating in the stock ending the day at its zenith.

Behind the scenes, ace investor Dheeraj Kumar Lohia revealed his strategic play, holding 3,73,756 shares of Emmbi Industries Ltd as of December 2023. With the stock's surge of Rs 21.70 per share, Mr. Lohia pocketed a staggering Rs 81,10,505 in a single day—a testament to the prowess of astute investment.

Emmbi Industries Ltd operates in two formidable business verticals:

1. B2B (Business to Business): A legacy venture focusing on industrial packaging solutions for sectors ranging from FMCG to chemicals and automobiles. It predominantly caters to the domestic market.

2. B2C (Business to Consumer): Launched in 2016 under the brand name 'Avana,' this venture zeroes in on water management and crop protection products for the agricultural sector, reaching out directly to farmers.

The B2B business, deeply rooted in providing solutions for pharma, FMCG, chemicals, food, construction, and automobiles, stands as the foundation. In contrast, the B2C business, a more recent entrant launched in 2016, strategically targets the agricultural domain, operating under two distinct verticals:

   a) Avana Consumer Durables: Offering products such as water storage tanks and pond liners.

   b) Avana Consumer Goods: Providing an array of products including woven sacks, tarpaulins, and threads.

In terms of revenue share, the B2B arm currently reigns supreme. However, the B2C segment is poised for exponential growth, projected to escalate from its current modest share to an impressive 40 per cent by FY2029. Noteworthy is the B2C business's cash-and-carry model, an operational strategy that enhances the working capital situation when compared to the credit-driven B2B sales model.

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