Promoters to purchase 11,15,000 shares worth Rs 20,85,00,000: This Multibagger auto ancillary company announced stellar performance in FY24!
The shares of the company have delivered a return of over 310 per cent to its shareholders in 3 years.
As per the recent development a prominent auto component manufacturer and the flagship company of the Kinetic Group in India, has recently announced a remarkable surge in its profits for the fiscal year 2023-24. With a robust growth rate of nearly 86 per cent, Kinetic Engineering Limited reported a staggering net profit of Rs 5.22 crore, compared to Rs 2.80 crore in the preceding fiscal year (FY 2022-23). This remarkable financial performance underscores the company's resilience and adaptability in navigating the dynamic market environment.
Despite the challenging market conditions, the company has demonstrated its capability to seize opportunities and deliver value to its stakeholders. Bolstered by its recent financial success, KEL has set an ambitious revenue target of Rs 200 to Rs 250 crore for the fiscal year 2024-25, reflecting its confidence in sustained growth and market opportunities. As per the Quarterly Results, Revenue surged by 9.76 per cent YoY with a net profit of Rs 0.96 crore compared to Rs 1.78 crore same period last year.
One of the key drivers behind KEL's growth momentum is its strategic vision, which emphasizes innovation, quality, and customer-centricity. By continuously investing in research and development and enhancing its manufacturing capabilities, KEL has positioned itself as a leader in the highly competitive auto component industry. Moreover, its focus on operational efficiency and cost optimization has contributed significantly to its bottom-line performance.
In line with its growth aspirations, KEL has also announced its fifth infusion of equity by promoters at a rate of Rs 187 per share. This infusion underscores the unwavering support of the promoters toward the company's growth trajectory and their confidence in its long-term prospects. Additionally, the promoters have increased their stake in KEL over the last three years from 49.13 per cent to 61.30 per cent, representing a significant increase of 12.17 per cent. This increase in promoter stake, coupled with the infusion of Rs 65 crore in funds, highlights their confidence in KEL's growth prospects and their commitment to creating value for shareholders.
On Friday the company’s stock closed the day at Rs 173.95 per share on the BSE. Additionally, the stock has delivered a multibagger return of 316 per cent in the past 3 years.
Investors must keep this stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.