Multibagger Stock Updates

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.

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.