Ashish Kacholia bought 10,34,353 shares in this Microcap Company on August 24, 2023: Stock hits upper circuit, witnesses heavy buying and generated multibagger return of 700 per cent!

The shares of the company have generated an impressive return of 380% in the last two years

The shares of Universal Autofoundry Limited witnessed a significant surge on August 24. The stock commenced trading at Rs 170.25, marking a 5.6 per cent increase compared to the previous day's closing price of Rs 161.20. During the intraday session, the stock exhibited a remarkable 20 per cent surge accompanied by significant trading volume. Finally, the shares of the company concluded the day at Rs 193.40 each.

On August 24, the veteran investor Ashish Kacholia bought 1,034,353 shares at a price of Rs 161.59 apiece.

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Upon scrutinizing today's share volumes, it becomes apparent that there has been a substantial increase of over 94 times in trading volumes compared to its average volumes on the BSE.  

The stock's 52-week high and low are Rs 193.40 and Rs 84.55, respectively. Possessing a market capitalization of Rs 234 crore, the stock has showcased outstanding performance in recent periods, yielding a remarkable 40 per cent return in the last month and an impressive 733 per cent return in the past three years. 

Financial Performance     

In the June quarter of FY24, the Company’s revenue from operations experienced a decline of 5.90 per cent YoY, going from Rs 61.17 crore to Rs 57.56 crore. The operating profit of the company fell from Rs 7.13 crore to Rs 6.96 crore and on a sequential basis it increased significantly from Rs 5.05 crore to Rs 6.96 crore, the operating profit stood at 12 per cent.    

Whereas the net profit of the company amounts to Rs 3.56 crore, the net profit margins stood at 6.2 per cent in Q1 FY24.  

The company's return on capital employed (ROCE) and return on equity (ROE) are at 21 per cent and 26 per cent, respectively. The Book value of the company is Rs 48 which means the stock is trading at Price to price-to-book value of 4.2 times in the market, whereas the price-to-earnings ratio is 22 times.   

Business Overview: 

Universal Autofoundry Limited incorporated in the year 2009, operates in the Industrial Consumables sector. It is headquartered in Jaipur, India, and specializes in manufacturing casting components in Grey Iron and S.G. (Ductile) Iron. The company supplies castings in Machined, Semi-Machined, and as-cast conditions, with surface treatments tailored to customers' needs. Suspension brackets, differential housings, hubs, etc., are among the items that find applications in the commercial vehicle and engineering industry. 

Disclaimer: This article is for informational purposes only and not investment advice.