Multibagger Alert: This real estate company has moved up by 300 per cent in three years

Shares of company are up by almost 21 per cent in the last five trading sessions

KBC Global (KGL), a leading player in the affordable and mid-income housing segment is up by almost 21 per cent in the last five trading sessions and is up by more than 4 per cent even as the market is trading on the lower side. Nonetheless, if you see last one year returns, it is down by 28 per cent. This fall has come after a huge rise in the share price of the company between 2019 and 2021. Adjusted for corporate action price (Bonus issue 4:1 on August 2021) the company had moved by almost 600 per cent in the above-mentioned period. 

So, the recent fall in and rise in the share price should be viewed in that context. The fundamental business performance will ultimately dictate whether the top is in, or if this is a stellar buying opportunity. On the back of a solid 5-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns. 

KBC Global was able to grow its operating profit by 3.3 per cent annually for the period ending FY21. Net profit in the same period increased by 15.7 per cent. This looks higher compared to the increase in share price in the same period. This suggests that, as the business progressed well over the last few years, market participants got attracted to the company’s share. It is not uncommon to see investors become enamoured with a business, after a few years of solid progress. 

Going ahead as we see more stocks from the realty sector coming out of its deep slumber, the company’s finance may improve further by looking at its residential project launches.