Ashish Kacholia bought 76,433 & Mukul Agrawal’s wife bought 95,542 shares of this railway electronics equipment company; Scrip trades at high ROE & high ROCE
The shares of the company have an ROE of 62 per cent and an ROCE of 74 per cent.
Today, the stock market was trading in red with BSE Sensex Index down by 0.25 per cent and NSE Nifty-50 Index down by 0.32 per cent. On the broader market, the indices were trading mixed with BSE Mid-Cap Index down by 0.15 per cent and BSE Small-Cap Index up by 0.26 per cent.
On the BSE, one stock was trending, hitting a 5 per cent upper circuit to Rs 1,963.90 per share from its previous closing of Rs 1,870.40 per share. The stock also made a new 52-week high of Rs 1,963.90 per share and gave multibagger returns of 297 per cent from its 52-week low of Rs 495 per share. The shares of the company saw a spurt in volume by more than 3 times on BSE.
The buzzing stock name is Concord Control Systems Ltd.
Concord Control Systems Ltd (CCSL) has established itself as a significant player in the Indian Railways market, providing a wide range of electrical machinery and allied products. Incorporated in 2011, the company has quickly gained recognition for its commitment to quality, innovation and customer satisfaction.
CCSL's expertise lies in the design, manufacturing, and supply of essential components for railway operations. Their product portfolio includes battery chargers, control panels, testing machines, emergency lights, fans, couplers and bellows, all tailored to meet the specific requirements of the Indian Railways. The company's dedication to research and development has led to the development of cutting-edge technologies.
Concord Control Systems Ltd has a strong clientele base that includes both government and private entities. On the government side, the company supplies to key railway manufacturing units such as the Rail Coach Factory Kapurthala, Integral Coach Factory Chennai and Modern Coach Factory Raebareli. Additionally, CCSL serves all zones of Indian Railways, as well as other government organizations like RVNL, Rites, BHEL and the Delhi Metro Rail Corporation. In the private sector, the company's clients include leading engineering and construction firms like Larsen & Toubro, Tata Projects, Sterling and Wilson and Kalpataru Power Transmission, among others. This diverse customer base demonstrates CCSL's ability to meet the needs of various stakeholders within the Indian Railways and allied industries.
DSIJ’s 'Multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
The company recently approved a proposal to issue 3,18,472 equity shares to the public (non-promoter) category on a preferential basis. These shares have a face value of Rs 10 each and will be issued for Rs 1,570 per share, including a security premium of Rs 1,560. This preferential issue is valued at Rs 5 lakh and is subject to shareholder approval. The proposed allottees include individuals and firms, with varying pre-issue shareholdings. The total number of shares issued will increase the company’s equity by 5.05 per cent.
In the allotment, Ashish Kacholia bought 76,433 shares, Opuleny Advisors and Consultants LLP bought 70,064, Asha Mukul Agrawal (Wife of Mukul Agrawal) bought 95,542 shares and Everest Finance & Investment Co bought 76,433 shares.
The company has a market cap of Rs 1,174.80 crore and has delivered good profit growth of 79.0 per cent CAGR over the last 5 years. The shares of the company have an ROE of 62 per cent and an ROCE of 74 per cent. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
Also Read: Cabinet Approves One More Semiconductor Unit Worth Rs 3,307 Crore: Electronics Manufacturing Company to set up a semiconductor unit at Sanand, Gujarat