Vijay Kedia hikes stake in this small-cap stock with 50,000 share purchase; keep a watch!

Over the last three months, it has demonstrated remarkable resilience, surging by an impressive 32.5 per cent.

Indian markets experienced a challenging start to the week, with both the Nifty and Sensex facing a downward trend, falling by 0.72 per cent and 0.73 per cent, respectively. The red tide extended across all sectoral indices, with Nifty PSU Bank leading the decline with a substantial drop of 3.09 per cent. Interestingly, the broader market indices suffered even more significant setbacks, as Nifty Midcap and Small-Cap plunged by 1.34 per cent and 1.78 per cent, respectively.

Amidst this turmoil, there emerged a ray of hope for shareholders of small-cap stock -Vaibhav Global Ltd. Vaibhav Global is a multinational e-tailer with a unique focus on value-conscious consumers. The company operates across developed markets and encompasses two distinct product verticals: Fashion Jewelry, Gemstones & Accessories, as well as Lifestyle Products, Home Décor, Beauty Care, Apparels & Accessories. With a comprehensive B2C business model, Vaibhav Global enjoys direct access to an astonishing 141 million households across the United States, the United Kingdom, and Germany. This access is facilitated through a multi-pronged approach, including their proprietary TV home shopping network, digital platforms, proprietary website, shopping apps, OTT platforms, marketplaces, and social media channels.

What's particularly noteworthy is the recent performance of Vaibhav Global's stock. Over the last three months, it has demonstrated remarkable resilience, surging by an impressive 32.5 per cent. However, when examining its performance over the past year, the stock has delivered a more modest return of 12.3 per cent.

Intriguingly, ace investor Vijay Kedia has displayed his confidence in Vaibhav Global by increasing his stake in the company. According to data available as of the quarter ended on September 30, 2023, Kedia has upped his stake from 1.95 per cent to 1.98 per cent. This strategic move involved Kedia acquiring an additional 50,000 shares during the second quarter, signaling his bullish outlook on the company's future prospects.

Adding to the optimism, the company's management has provided guidance for the future. They anticipate an 8-10 per cent revenue growth in FY24 and even more robust mid-teens growth from FY25 onwards.

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