Multibagger Stock Updates

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1

Two-year multibagger stock hits an all-time high; do you own it?

The key benchmark indices concluded Friday’s trading session on a positive trajectory. The Sensex and Nifty recorded significant gains, closing with an uptick of 0.44% and 0.51%, respectively.

In this optimistic market, the shares of ESAB India Limited soared 2.49%. What makes it intriguing is that the stock reached an all-time high of Rs 6,054.10 apiece on BSE.

Company profile

ESAB India Ltd is a prominent provider of welding and cutting solutions in the Indian market, operating as a subsidiary of the ESAB Group, which is ultimately under the ownership of the USA’s Colfax Corporation. This company has established itself as a key player in the industry, offering a range of high-quality products and services to meet the diverse needs of its customers.

Recent Financial Ratios:

  1. Dividend Yield: With a dividend yield of 1.31%, ESAB India Ltd demonstrates a commitment to returning value to its shareholders through dividend payments.

  2. Return on Capital Employed (ROCE): A remarkable ROCE of 70.7% reflects the efficiency and effectiveness of the company in utilizing its capital to generate profits.

  3. Return on Equity (ROE): The ROE stands at an impressive 53.2%, indicating strong returns for shareholders concerning their equity investments.

  4. Price-to-Earnings (PE) Ratio: The PE ratio of 61.6x suggests that investors have shown confidence in the company’s growth prospects, potentially leading to a higher stock price.

Product Portfolio:

ESAB India Ltd primarily focuses on welding-related products, with welding consumables constituting the majority of their product portfolio at 71%. This indicates their dedication to providing materials essential for welding processes.

Welding equipment is another significant aspect of their offerings, making up the remaining 29% of their product distribution. This comprehensive product mix ensures that ESAB India Ltd caters to a wide range of welding and cutting needs in the market.

Furthermore, the company has proven to be a true multibagger stock, delivering remarkable returns of over 100%.

Coined by Peter Lynch, the term “multibagger stock” symbolizes exceptional growth and substantial returns, akin to a baseball player advancing to multiple bases. It represents an impressive achievement in the world of investing.

ESAB India Limited perfectly aligns with this definition, witnessing substantial buying activity and experiencing a surge of over 144% in the last 2 years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

2

Multibagger stock Texmaco Rail to raise Rs 750 crore; stock climbs over 3%

Over the past six months shares of the company have given multibagger returns of 184.70%, in the same time frame BSE Industrials have changed by 37.05%.

Texmaco Rail and Engineering Ltd, an engineering construction firm, has initiated a Qualified Institutional Placement (QIP) to raise Rs 750 crore, setting a floor price of Rs 135.90 per share. This offering includes a green shoe option of Rs 200 crore.

Qualified Institutional Buyers
QIPs enable the issuance of shares to the public bypassing typical regulatory compliance, with Qualified Institutional Buyers (QIBs) being the sole eligible entities. The inclusion of a green shoe option permits underwriters to sell more shares than the original allotment. The Kolkata-based company intends to utilize the funds garnered from the QIP for diverse purposes, such as funding capital expenditures, repaying borrowings, supporting working capital requirements, and meeting general corporate needs.

Stock performance
In the last trading session, the stock closed at Rs 148.85. Today, it opened at Rs 150.45 and closed at Rs 154.25, up by 3.63%. Company’s 52-week high stands at Rs 163.85 while its 52-week low stands at Rs 40.49. The company currently boasts a market capitalization of approximately Rs 5,000 crore. Over the past six months shares of the company have given multibagger returns of 184.70%, in the same time frame BSE Industrials have changed by 37.05%.

Company profile
Texmaco Rail and Engineering reported robust financials for the quarter ending September 2023, with consolidated net profit surging by 70% year-on-year to Rs 20 crore. Consolidated total income exhibited a significant rise of 64% year-on-year, reaching Rs 810 crore. Additionally, consolidated revenue from operations witnessed a substantial increase of 66% year-on-year, reaching Rs 805 crore.

Texmaco Rail and Engineering Ltd is an engineering infrastructure company and part of the Adventz Group, The company is involved in the business of manufacturing Rolling stock, hydro-mechanical equipment, steel castings & construction of Rail EPC, bridges, and other steel structures.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

3

Multibagger stock SJVN signs power usage agreement; shares gains | 26 February, 2024

In the past year company’s shares have yielded a multibagger return of 287% and in the same time frame BSE Utilities have changed by 118%.

About the PUA

SJVN Ltd which is in the business of power generation today reported that a wholly owned subsidiary of the company SJVN Green Energy Limited (SGEL) has signed the Power Usage Agreement (PUA) with Jammu & Kashmir Power Corporation Limited (JKPCL) at Jammu on February 23, 2024 for 300 MW Solar Power Capacity.

This 300 MW power shall be supplied to JKPCL from the under-construction 1,000 MW Bikaner Solar project which is being developed under the CPSU Scheme of IREDA at Rs 5,491 crores. The project is being developed under the Domestic Content Requirement (DCR) mode and is slated for commissioning by July 2024. Power from this project is for Government use either directly or through Discom.

SJVN is on rapid progression to achieve its shared vision of 25,000 MW by 2030 & 50,000 MW by 2040. This shared vision has been formulated in sync with the commitment of the Government of India to generate 50% of energy from non-fossil fuel-based energy resources by 2030.

Stock Performance

In the last trading session, the stock closed at Rs 119. Today it opened at Rs 120 and currently trading at 123.10, up by 3.45%. The company’s 52-week high stands at Rs 170.45, while its 52-week low stands at Rs 30.39. Currently, the company boasts a market capitalisation of approximately Rs 48,400 crore. In the past six months shares of the company have given multibagger returns of 116.66%. In the past year, the company’s shares have yielded a staggering multibagger return of 287.26% and in the same time frame, BSE Utilities have changed by 118.45%.

About the SJVN

SJVN Limited is an Indian public sector undertaking which is engaged in the business of hydropower generation and transmission. It is a joint venture between the Government of India and the Government of Himachal Pradesh and was incorporated in 1988 as Nathpa Jhakri Power Corporation. SJVN is one of the largest hydropower companies in India and is committed to generating clean and green energy.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

5

Multibagger Welspun Corp Inks Contract Worth Rs 512 Crore with SWCC: Stock to Keep on Radar!

Trading at a PE multiple of 13, Welspun Corp Ltd presents an intriguing opportunity. This multiple falls below the industry average, indicating potential value

After a rejuvenating weekend break, the stock market is set to resume its bustling activity, with a focus primarily on stock-specific actions. Among the myriad of options, one stock stands out and demands attention: Welspun Corp Ltd.

Welspun Corp Ltd: A Closer Look

Trading at a PE multiple of 13, Welspun Corp Ltd presents an intriguing opportunity. This multiple falls below the industry average, indicating potential value. Moreover, the stock has an impressive track record, boasting multibagger returns of almost 178.5%.

Why Welspun Corp Ltd Matters on Tuesday

The spotlight shines on Welspun Corp Ltd due to a significant development involving its associate company, East Pipes Integrated Company for Industry (EPIC). EPIC, a leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes in Saudi Arabia, has inked a contract with the Saline Water Conversion Corporation (SWCC) valued at SAR 230 million (Approx. Rs 512 crore). This contract spans over 30 months and encompasses the manufacturing and supply of steel pipes.

The financial impact of this deal will be felt from the first quarter of the financial year 2024-2025 up to the third quarter of the financial year 2026-2027. EPIC’s robust infrastructure, coupled with its track record of executing mega orders, positions it favorably to secure more projects in the Water and Oil & Gas sectors. This aligns with the strategic objectives outlined in Saudi Arabia’s Vision 2030.

EPIC: A Visionary Player

EPIC’s commitment to Vision 2030 is unwavering. The company’s dedication to operational excellence, innovation, and sustainability underscores its pivotal role in driving Saudi Arabia’s strategic agenda. With a keen eye on emerging opportunities, EPIC is poised to further strengthen its market position and adapt its portfolio to meet evolving customer needs.

Driving Long-Term Value

EPIC’s focus extends beyond immediate gains. The company prioritizes financial stability and business resilience to deliver sustainable, long-term value to its shareholders and stakeholders. In November and December, major cumulative orders received by EPIC stood at more than Rs 4,000 crore.

Continued Growth Trajectory

The demand for EPIC’s HSAW pipes remains robust, particularly in the US market. With a healthy order book standing at 206 KMT (thousand metric tons), the company remains optimistic about securing new orders to sustain its momentum.

In conclusion, Welspun Corp Ltd, through its subsidiary EPIC, emerges as a compelling investment opportunity, driven by strategic partnerships, strong fundamentals, and a commitment to long-term value creation. As D-Street gears up for another eventful day, keeping an eye on Welspun Corp Ltd could prove to be prudent for investors seeking growth potential and stability in their portfolios.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions