228 Per Cent Returns From 52-week Low of Rs 52.01 Per Share: Multibagger Small-Cap Stock Jumps Over 8 Per Cent From Intraday Low

Kiran Shroff
/ Categories: Trending, Multibaggers
228 Per Cent Returns From 52-week Low of Rs 52.01 Per Share: Multibagger Small-Cap Stock Jumps Over 8 Per Cent From Intraday Low

The stock gave multibagger returns of 228 per cent from its 52-week low of Rs 52.01 per share in just 6 months and a whopping 2,000 per cent in 5 years.

The stock market was trading in green today, with both the BSE Sensex and NSE Nifty-50 Index gaining 0.90 per cent each. Along with the market in green, shares of Shanti Educational Initiatives Ltd (SEIL) surged over 8 per cent to Rs 171 per share. company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces. 

Shanti Educational Initiatives Limited has taken a strategic step to strengthen its position in the school uniform market. The company has acquired a controlling stake in Uniformverse Private Limited, investing up to Rs 1 crore. This investment will increase Shanti's shareholding in Uniformverse to over 50 per cent, making it a subsidiary. This acquisition aligns with Shanti's broader strategy of business expansion and leveraging synergies within the school uniform sector. Additionally, Shanti Educational Initiatives Limited has recently attracted significant investor interest. Albula Investment Fund Ltd and Legends Global Opportunities (Singapore) Pvt Ltd have acquired shares in the company through block deals on the BSE. Albula Investment Fund Ltd purchased 47,20,190 shares at Rs 123 per share, while Legends Global Opportunities (Singapore) Pvt Ltd acquired 17,15,000 shares at Rs 114.20 per share.

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.

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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 Rs 3,285 crore and working capital requirements have been reduced from 70.8 days to 51.0 days

The stock gave multibagger returns of 228 per cent from its 52-week low of Rs 52.01 per share in just 6 months and a whopping 2,000 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. 

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