Adani-backed low-priced multibagger micro-cap stock with clients like BHEL—keep an eye on it!
The stock has delivered astounding performance, soaring 117 per cent
In the labyrinth of the stock market, where fortunes rise and fall like the tides, there exists a realm of untapped potential - the realm of hidden gems. These accidental high yielders, obscured by the shadows of giants, hold the promise of substantial returns for those who dare to look beyond the obvious. Today, we unravel the mystique surrounding one such gem - ABC India Ltd.
The Art of Discovery: Diligent Research as the Torchbearer
To uncover these treasures, one must embark on a quest of relentless research. Peeling back the layers of a company's financials, industry dynamics, and competitive landscape is akin to wielding a powerful magnifying glass in the dense jungle of the stock market. ABC India Ltd, priced at an intriguing Rs 121.73 and flirting with its 52-week high of Rs 124, beckons investors to delve into its narrative.
ABC India Ltd: A micro-cap on the Rise
Meet ABC India Ltd, a company woven into the fabric of surface transportation and project logistics since its inception in 1972. Operating through a network of 20 branches and warehouses across the country, ABC offers a diverse range of services, from road and rail logistics to custom clearing and warehousing.
Initially part of the TCI-Bhoruka group, ABC India Ltd underwent a transformative journey in 1995 when the group's business was divided among six brothers. Today, Mr. Ashish Agarwal, the grandson of the late Mr. P D Agarwal, steers the ship as the Managing Director.
Navigating Challenges: The ABC Advantage
Despite challenges in recent years, ABC stands tall with resilience. A vast fleet of owned vehicles, though underutilized in the niche project logistics segment, speaks to the company's commitment to quality service. The decision to selectively accept orders in the project business, a move aligned with industry trends, showcases ABC's strategic acumen.
Clientele and Diversification: The Pillars of Stability
ABC boasts a well-diversified client base, featuring industry heavyweights like Bharat Heavy Electricals Limited (BHEL), Numaligarh Refinery Limited (NRL), and Bharti Airtel. Repeat orders from major clients underscore the company's reliability and competence. Notably, ABC has successfully diversified its order book, with NRL contributing a significant 52 per cent as of August 20, 2023.
The Intriguing Twist: Adani Properties' Stake and Market Rally
Adding a touch of intrigue to the narrative is the revelation that Adani Properties Private Ltd holds a 1.20 per cent stake in ABC India Ltd. The stock has delivered astounding performance, soaring 117 per cent in the last year, turning it into a multibagger. Adani Properties Private Ltd is a three-decade-old company is one of the promoter group companies that hold investments on behalf of Gautam Adani family in Adani Ports and SEZ. The recent surge of almost 20 per cent in a week and an impressive 43.30 per cent year-to-date amplifies the allure of this hidden gem.
In the tapestry of stock market stories, ABC India Ltd emerges as a chapter waiting to be explored. As investors contemplate the road less traveled, the micro-cap marvel beckons, promising untold adventures in the pursuit of hidden treasures. Will you heed the call? The answer might just unveil a fortune yet unseen.
Disclaimer: The article is for informational purposes only and not investment advice.
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