Hidden gem micro-cap: This stock was locked at the upper circuit and hit a fresh 52-week high as net profit jumped over 7 times!
The stock has proved to be a hidden gem multibagger for its shareholder as it delivered gains of 108.7 per cent in the last six months.
On Friday, Nifty ended its two-day winning streak as weak global cues played spoilsport. As a result, the Nifty ended the day with a modest cut of 0.21 per cent. That said, stock-specific action continued on D-Street as several companies primarily from the broader market segment reported their earnings. One of the companies which took everyone by surprise after the outcome of its earning was a micro-cap company with a market cap of Rs 191 crore- India Gelatine and Chemicals.
Incorporated in 1973, India Gelatine and Chemicals Ltd is engaged in the manufacturing and export of Ossein, Di-Calcium Phosphate (DCP)& Gelatine. The product portfolio of the company includes a. Edible Gelatine, b. Photographic Gelatine, c. Technical Gelatine and d. Pharmaceutical Gelatine.
For the quarter that ended on 31 December 2022, the company reported a sale of Rs 56.39 crore a growth of nearly 29 per cent YoY. Operating profit swelled to Rs 10.28 crore as against Rs 1.70 crore in the same period last year. Net profit reported by the company saw a breathtaking jump of 617 per cent on a YoY basis.
The stock has proved to be a hidden gem multibagger for its shareholder as it delivered gains of 108.7 per cent in the last six months. What’s more impressive is that despite this strong up-move in a very short period the stock is trading at a PE multiple of 10.7, and the company has been maintaining a healthy dividend payout of 25.5 per cent.
The company’s main product Gelatine primarily caters to the pharmaceutical industry in India, which has a market size of USD 18.07 billion and is likely to grow by 11 per cent by 2025.