12,224.55-127.8
Stock Analysis, IPO, Mutual Funds, Bonds & More

Multibagger alert! 10 little-known stocks jumped up to 1,500% in 2019

Some of the counters included have already more than doubled investor money since January.

, ETMarkets.com|
Updated: Dec 13, 2019, 03.31 PM IST
0Comments
Shutterstock.com
Gain-rise-2---shutter
Some of the counters included 7NR Retail, Authum Investment & Infrastructure and Kapashi Commercial, which have already more than doubled investor money since January this year.
At casual glance at the stocks, which have scaled their fresh 52-week highs in December so far, would threw up some not-so-common names from various sectors including trading, auto, jewellery, hotels and NBFCs.

Some of the counters included 7NR Retail, Authum Investment & Infrastructure and Kapashi Commercial, which have already more than doubled investor money since January this year. That is, when the BSE Smallcap index has lost nearly 10 per cent in the ongoing calendar year.

Among others, shares of 7NR Retail jumped 1,560 per cent to Rs 213.60 as of December 10 from Rs 12.90 in January this year. The company posted Rs 48.15 lakh profit for the quarter ended September 2019 against a Rs 20.95 lakh loss posted in the preceding quarter ended June 2019.

7NR Retail is engaged in trading of apparels in the wholesale and retail segments, including include kids garments under the brand name of Gini & Jony.

It was followed by Authum Investment, whose share price rallied to Rs 75.30 as of December 9 from Rs 32.40 on January 1. Likewise, Kapashi Commercial jumped to Rs 46 from Rs 21.50 during the same period.

Authum Investment, formerly Pentium Investments and Infrastructures, is a non-banking finance company (NBFC), engaged in other financial service activities, except insurance and pension funding activities. The company’s principal business is the acquisition of securities. Authum is engaged in fund-based activities, providing loans and advances, and investment in shares and securities.

The company’s net loss narrowed down to Rs 2.40 crore in Q2FY20 against a net loss of Rs 20.40 crore in the same period last year. On the other hand, net sales increased by 40 per cent to Rs 30.60 crore from Rs 21.80 crore during the same period.

Kapashi Commercial, incorporated in the year 1985, has diversified presence in the field of development and trading in ferrous and non-ferrous metals as also the stock market. The company’s net jumped 163 per cent to Rs 12.90 lakh for the latest quarter ended September 2019 against a Rs 4.90 lakh profit reported for the same period last year.

Amon others, Kavit Industries, ABC India, Integra Telecommunications and Mauria Udyog touched their 52-week high of Rs 96 (on December 9), Rs 87 (December 6), Rs 27.80 (December 4) and Rs 363.30 (December 9). Shares of these companies have rallied 70-240 per cent on a year-to-date basis till December 9.

ABC India is engaged in transportation and contract jobs, and trading of petroleum products. Integra Telecommunication and Software is in the business of computer hardware and software and Mauria Udyog is a manufacturer of welded steel cylinders. The company manufactures and exports liquefied petroleum gas (LPG) cylinders, valves, regulators and related accessories.

ABC India posted a 22 per cent YoY rise in net profit at Q2 on a 61 per cent rise in net sales. On the other hand, Integra and Mauria posted a net loss of Rs 4.5 lakh and Rs 12.70 crore in Q2 against a net profit of Rs 2.40 lakh and Rs 2.50 crore, respectively, in Q2FY19.

Sar Auto, R Systems, Royale Manor Hotels, Uday Jewellery stood among others which have scaled new 52-week highs in the recent past. All have firms managed to deliver 8-50 per cent returns to investors in 2019 so far.

Sar Auto is a manufacturer of quality assured gears, gearboxes and other transmission components in Rajkot, Gujarat. R Systems is in the business of providing Information Technology (IT) and IT-enabled Services (ITeS) solutions and services. Net profit and net sales of Sar Auto Products declined 76 per cent and 41 per cent YoY in Q2FY20.

Royale Manor Hotels and Industries, which is engaged in the activities of hotels and restaurants, sees 31 per cent YoY rise in net profit with nearly 4 per cent drop in net sales in the September quarter.

Uday Jewellery Industries, which is engaged in jewellery manufacturing services, reported 50 per cent YoY rise in net profit on 14 per cent fall in net sales for the quarter ended September 2019. The stock traded at a trailing-12 month price-to-earnings ratio of 54.50 on December 10 against an industry P/E of 60. The ratio measures the company’s current share price to its earnings per share.

On the other hand, the price-to-book value of Royal Manor Hotels is hovering at 0.50 times, when the ratio for other companies mentioned above trade at more than 1x. The price-to-book ratio compares a company’s market value to its book value.

(Disclaimer: Stocks mentioned in the article are for information purpose only. Consult your financial advisor before taking any position.)
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service