Multibagger stock under Rs 170 hit back-to-back 52-week highs; Company approved investment in the equity shares of Uniformverse Pvt Ltd
The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 52.01 per share and a whopping 1,600 per cent in 5 years.
Today, shares of Shanti Educational Initiatives Ltd (SEIL) surged 1.94 per cent and made a new 52-week high of Rs 167.95 per share from its previous closing of Rs 164.75. In the recent trading sessions, the stock has been hitting back-to-back 52-week highs.
Shanti Educational Initiatives Limited has announced its plans to invest up to Rs 1 crore in the equity shares of Uniformverse Private Limited. This investment will increase the Company's shareholding in Uniformverse Private Limited to more than 50 per cent, making it a subsidiary company. Uniformverse Private Limited, a manufacturer of textile garments and clothing accessories, has an authorized share capital of Rs 1 crore and a paid-up capital of Rs 70 lakh. Its gross turnover for the financial year ending March 31, 2024, was Rs 7,21,56,135.
The acquisition of Uniformverse Private Limited falls within the ambit of related party transactions as the Company already holds a 50 per cent stake in the company. However, the acquisition is being done at arm's length, and the promoter group and group companies do not have any other interests in the acquired entity. The acquisition aligns with Shanti Educational Initiatives Limited's strategic goals of expanding its business and leveraging synergies with Uniformverse Private Limited in the field of school uniforms. The total consideration for the acquisition of 0.50 per cent of Uniformverse Private Limited's share capital is Rs 14,00,000 at a share price of Rs 400 per share. After this acquisition, Shanti Educational Initiatives Limited will hold a total of 50.50 per cent of Uniformverse Private Limited's equity shares.
Additionally, there have been block deals involving Albula Investment Fund Ltd (Mauritius Based) and Legends Global Opportunities (Singapore) Pvt Ltd. Albula Investment Fund Ltd bought 47,20,190 shares at Rs 123 per share from Ltd Investment Fund Ltd. Earlier, on August 30, 20924, Legends Global Opportunities (Singapore) Pvt Ltd bought 17,15,000 shares at Rs 114.20 per share from The Great International Tusker Fund. These block deals were both executed on the BSE.
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Shanti Educational Initiatives Ltd (SEIL), a division of the Chiripal Group based in Ahmedabad, India, offers a comprehensive range of educational services. Their network includes Shanti Asiatic Schools, operating in multiple cities with over 25,000 K-12 students enrolled, and Shanti Juniors, a chain of over 300 preschools across 74+ cities. In 2013, SEIL launched Shanti's Hopskotch Preschool, catering to parents seeking a premium preschool experience with a global learning approach and a clean environment.
According to Quarterly Results, the net sales increased by 239 per cent to Rs 9.83 crore in Q1FY25 compared to Rs 2.90 crore in Q4FY24. The company reported a turnaround story with an operating profit of Rs 3.94 crore and a net profit of Rs 3.09 crore in Q1FY25 compared to an operating loss of Rs 2.41 crore and a net loss of Rs 1.09 crore in Q4FY24, an increase of 263 per cent and 384 per cent, respectively. In its annual results, net sales increased by 73.3 per cent to Rs 19.05 crore and net profit increased by 8.3 per cent to Rs 3.65 crore in FY24 compared to FY23.
The company is in a very strong financial position with minimal debt, indicated by its debt-to-equity ratio of only 0.01, which means its debt is just a fraction of its equity. This is further emphasized by the low debt figure of just Rs 1.53 crore. Additionally, the company has a healthy market cap of over Rs 2,600 crore and working capital requirements have been reduced from 70.8 days to 51.0 days
The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 52.01 per share and a whopping 1,600 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.