From Rs 55 to Rs 580: This low PE small-cap pharma stock became multibagger in just three years!
The stock has been a proven multi-bagger, having surged 10 times in the last three years. Last year, it increased shareholders’ wealth by 250 per cent!
Despite the Indian market being volatile today, some micro-cap and Small-Cap multibagger Multi-bagger , having surged 10 times in the last three years. Last year, it increased shareholders’ wealth by 250 per cent!
Let’s know, what is so special about this company!
Belonging to the pharmaceutical sector, this Rs 450 crore-market cap company works in manufacturing modernised capsule shells, which include hard gelatine capsule shells, hard cellulose shells, and pharmaceutical dosage forms. It ensures to provide turnkey solutions to its clients. It also supplies various APIs to big pharmaceutical companies.
Talking about fundamental aspects, the company has been posting stellar results in the past three years. In its recent quarterly result, net sales jumped 72 per cent YoY to Rs 44.19 crore. Interestingly, its EBITDA grew by 118 per cent YoY to Rs 9.36 crore despite rising raw material costs. The net profit margin currently stands at 10.30 per cent, which has significantly improved in two years. Management aims for robust growth in the upcoming future. Such strong fundamentals have boosted investors’ confidence. It is quite interesting to know that despite a strong performance, this stock is undervalued as its current PE stands at 26.98 against the sector PE of 29.07.
On the technical chart, the stock trades near an all-time high level of Rs 597. The volumes have been above-average lately, which indicates strong buying sentiment. The stock has registered a breakout from its 20-week cup & handle pattern, which is quite positive. Momentum oscillators also show bullishness in the stock.
Overall, the company ticks all the boxes of a perfect setup. Long-term investors can keep an eye on this stock to track its development!