Ashish Dhawan’s portfolio multibagger stock: This plywood & laminates company announces a capex plan of Rs 239 crore with a revenue aim of Rs 600 crore!
The stock is up by 50 per cent in 2 years and gave multibagger returns of 190 per cent in 3 years.
A leading plywood boards and laminates manufacturing company announced that it is setting up of greenfield project at Naidupeta, Andhra Pradesh, for manufacturing of 3.50 million laminate sheets/boards per annum with an estimated investment of Rs 225 crore.
The company added that on a consolidated basis, the manufacturing facility has the potential to generate revenue of Rs 600 crore per annum on full capacity utilization. Consequent to the above commercialization, the installed capacity of the company for manufacturing laminates will be increased from 21.02 million laminate sheets per annum to 24.52 million laminate sheets/ boards per annum on a consolidated basis. The total capex incurred for the project stands at Rs 239 crore approx. till commencement of the commercial production.
Additionally, as of June 2023, Ashish Dhawan an investor owns 48,14,210 shares or a 3.79 per cent stake in the company aggregating a total of approx. Rs 200 crore.
On Friday, shares of the company were trading at Rs 413.85 per share, down 0.77 per cent from its previous closing of Rs 417.05. The stock traded at an intraday high of Rs 432.85 and an intraday low of Rs 409.
According to the financials, the company has a market cap of over Rs 5,200 crore with a 3-year stock price CAGR of 42 per cent. The net sales increased by 9.35 per cent to Rs 515 crore and net profit increased by 28 per cent to Rs 32 crore in Q1FY24 compared to Q1FY23. The net sales increased by 19 per cent to Rs 2,026 crore and net profit increased by 41 per cent to Rs 128 crore in FY23 compared to FY22.
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The stock that generated a buzz is none other than Greenlam Industries Ltd.
Greenlam Industries Limited manufactures laminate flooring and plywood board. The Company's laminates range from metallic to textured and can be used for residential, commercial and office spaces.
The stock is up by 50 per cent in 2 years and gave multibagger returns of 190 per cent in 3 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.