Over 2000 per cent returns; this multibagger small-cap stock surprises investors with a 1:1 bonus for the first time!
The driving force behind this explosive surge was a combination of the company's robust Q1FY24 performance and a tantalizing announcement of a Bonus share issue.
Step into the electrifying world of the stock market, where the earning season is ablaze with excitement and anticipation. It's a time when investors and market enthusiasts keep a keen eye on companies not only for their financial prowess but also for intriguing corporate events like dividend and bonus issues.
Amidst this electric atmosphere, one stock has emerged from the shadows, captivating the attention of astute investors and igniting a frenzy of interest. Meet Shilchar Technologies Ltd. (STL), a powerhouse established back in 1986, specializing in the manufacturing of various categories of transformers, from power to distribution and electronics & telecommunication.
STL's influence extends beyond the borders, serving both the domestic market and international demand from far-flung places like Africa, USA, Canada, and the Middle-East. Their forte lies in crafting tailor-made, customized transformers, meticulously engineered to cater to niche industry segments. With a capacity of 4000 MVA as of March 31, 2023, the company forges distribution transformers ranging from 5 KVA to 3,000 KVA and power transformers from 3 MVA to 15 MVA. The current market cap of company is below Rs 1000 and it is a Small-Cap stock.
Last Friday, a storm of activity surrounded STL as the stock surged from its opening price of Rs 2529 to an exhilarating intra-day high of Rs 2650, ultimately settling at Rs 2599.70 on BSE, a staggering 4.16 per cent increase. The driving force behind this explosive surge was a combination of the company's robust Q1FY24 performance and a tantalizing announcement of a Bonus share issue.
The excitement doesn't end there. Brace yourself for a groundbreaking corporate decision! The Board of STL has decided to issue Bonus shares in a 1:1 ratio to shareholders as of the record date, pending approval at the Annual General Meeting. Mark your calendars; these enticing bonus shares are expected to be credited or dispatched by September 10, 2023.
STL's stock has been an enigma, a rare find in the ever-changing landscape of the market. Its extraordinary performance has been nothing short of awe-inspiring, delivering an astounding 300 per cent surge over the last year. Even on a year-to-date basis, the stock has risen a remarkable 170 per cent, granting investors multi-bagger returns that seem almost surreal. But hold onto your seats for this mind-blowing revelation – over the course of three years, the stock has shattered all expectations, yielding an astonishing 2,113 per cent returns!
Delving deeper into the powerhouse's prowess, as of May 23, 2023, STL's order book has witnessed exponential growth, particularly in export orders, spanning a 3-12 month execution cycle. The secret behind this remarkable progress lies in their strategic penetration into the international market, expanding their reach and cementing their position as a force to be reckoned with.
With an illustrious operational history of over two decades, STL has solidified its standing in the domestic market, particularly in the renewable energy segment. But their reach extends far beyond the borders, as their products find their way to the shores of the USA, Canada, Middle East, and African nations like Kenya and Nigeria.
The stock market is buzzing, and Shilchar Technologies Ltd. is the name on everyone's lips. A company with a compelling track record, an uncanny ability to thrive, and an unwavering vision for the future, STL continues to dazzle and captivate, making it a stock worth keeping a close eye on. The earning season has just become a whole lot more electrifying!