This Stock Becomes India's Second Most Expensive: Low PE, High Promoter Holding
After Hitting Back-to-Back Upper Circuits, This Stock Becomes India's Second Costliest
On Monday, the Indian benchmark indices ended the session on a flat note with a slight negative bias. However, it was an action-packed day in terms of stock-specific movements. Notably, it was a historic day for The Yamuna Syndicate Limited (TYSL). Before diving into why it was historic, let's get to know the company.
Incorporated in 1954, The Yamuna Syndicate Limited (TYSL) is a key holding company with a 45 per cent stake in ISGEC Heavy Engineering Limited (IHEL), the flagship company of the ISGEC Group. TYSL is also engaged in the trading and retailing of various products. This includes retailing HPCL’s petroleum products, industrial and automotive lubricants, Amaron batteries, agricultural tools and pesticides, and electrical equipment. The oil and lubricants segment is the major contributor, accounting for approximately 47 per cent of FY2023 trading revenues and 48 per cent of FY2022 trading revenues. While the trading business dominates the company’s revenue mix (91 per cent in FY2023 and 95 per cent in FY2022), it contributes minimally to profits, making the company's profitability highly dependent on dividends from IHEL.
Now, let's explore why Monday was a historic day for The Yamuna Syndicate Limited (TYSL). The stock hit an upper circuit of 10 per cent, with a provisional closing at Rs 62,555 per share on the BSE. Remarkably, in the last three trading sessions, the stock has consistently hit back-to-back circuits. With this move, TYSL has become the second costliest share in the Indian markets, trailing only MRF. On Monday, TYSL surpassed Honeywell Automation, which previously held the position as the second costliest share in the Indian market.
In 2024, the stock has gained an impressive 152 per cent as a result, the stock has turned out to be a multibagger. It is currently trading at a low PE ratio of 15.5, with a promoter holding of 74.87 per cent, according to the shareholding pattern for the quarter ended March 2024.
Disclaimer: The article is for informational purposes only and not investment advice.