FIIs bought 20,00,000 shares of this multibagger small-cap stock with 7,500 per cent returns; scrip trades at high ROE & high ROCE
The stock gave multibagger returns of 500 per cent in 5 years and a whopping 7,500 per cent in a decade.
Cantabil Retail India Ltd informed that the Board of Directors of the company by way of a Circular resolution dated February 22, 2024, has considered, and approved, the allotment of 20,00,000 equity shares of the face value of Rs 2 each at an issue price of Rs 252 each (including a premium of Rs. 252 per share) by way of Preferential issue for cash basis Rs 50,40,00,000 to Think India Opportunities Master Fund LP.
Consequently, the paid-up equity share capital of the company has increased from Rs 16,32,76,080 consisting of 8,16,38,040 equity shares to Rs 16,72,76,080 consisting of 8,36,38,040 equity shares.
Earlier, the company ex-traded a stock split/sub-division of every 1 equity share having a nominal/face value of Rs 10 each to be subdivided into 5 equity shares having nominal/face value of Rs 2 each. The ex-date date for the stock split of shares was Thursday, November 2, 2023. The reason behind the stock split is to boost the stock's liquidity and make it affordable for small investors.
Cantabil Retail India Ltd was incorporated in 1989 and started its readymade garments manufacturing and retailing business in the year 2000. As of now, online sales generate 1 per cent of the company's total revenue and the company expects online business to grow to nearly 5 per cent in the next 3-4 years. The company has established a 1.5 lakh sq. ft. state-of-the-art manufacturing facility in Bahadurgarh, Haryana with a capacity to produce 10 lakh garment pieces/per annum.
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Today, shares of Cantabil Retail India Ltd gained 3.85 per cent to Rs 248.35 per share with an intraday high of Rs 265.15 and an intraday low of Rs 231.75. The company has a market cap of over Rs 2,000 crore and has delivered good profit growth of 29.5 per cent CAGR over the last 5 years. Additionally, the company reported positive numbers in its Quarterly Results (Q3FY24) and nine-month results (9MFY24).
The shares of the company have an ROE of 35.2 per cent and an ROCE of 25.3 per cent. The stock gave multibagger returns of 500 per cent in 5 years and a whopping 7,500 per cent in a decade. 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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