- Date : 13/12/2022
- Read: 3 mins
A look at the impressive growth in Shri Keshav Cements share price
Nothing exudes success in the stock market like investing in a multi-bagger stock. The problem is, it is not easy to identify such stocks in advance. These are often little-known companies whose stock price is very low. The company manufactures a unique product and/or has a competitive advantage in the market. They can become multi-bagger when the demand for the product increases sharply. Such companies are often driven by a strong and progressive management team.
Take Shri Keshav Cements for instance. The price for this stock was around Rs 11-12 in late 2012. It is trading in and around the Rs 120 mark at present. This is the second time the stock has rallied massively
in the last 10 years, the earlier being in late 2017 when it touched the Rs 200 barrier. It peaked at a 52-week high of Rs 157 earlier in August this year. Long-term investors of Shri Keshav Cements have earned over 1100% appreciation on their holding. This makes this stock a quintessential multi-bagger.
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Company Information
Formerly known as Katwa Udyog Limited, Shri Keshav Cement and Infra Limited has two cement plants and one captive solar plant. It was founded by industrialist HD Katwa and is presently managed by Venkatesh Katwa, Vilas Katwa and Deepak Katwa. The company was incorporated in 1993 and listed in 1995.
In November this year, the company informed the exchanges of its expansion in production capacity to 3000 tons per day. With this, the new production capacity of the company will be 1 metric tonne per annum.
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Key Information
Even in recent years, Keshav Cements has given a strong performance for its investors. Its YTD returns stand at over 115%, with 286% in 2 years and 306% in the last three years. Someone investing Rs 1 lakh in this stock at the beginning of this year would have his or her investment doubled by now. Investment of Rs 1 lakh made a year ago has now grown to Rs 2.35 lakhs.
Its revenue increased sharply to Rs 113 crores in FY22, after a three-year stagnation when it circled between Rs 70-80 crores. FY22 also saw the company making a net profit of Rs 9 crores, after four consecutive previous years of losses. As a result, the earnings per share and the return on equity also turned positive in FY22.
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In the last year, the company’s promoter holding continued to remain at 73.03%, while the remaining share is publicly held. The one-month average volume on this stock is around 5000, with a one-week average of 3000. The low volume makes the stock sensitive to triggers and make it seem suitable mostly for high-risk traders.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
Source
https://www.moneycontrol.com/india/stockpricequote/cement-mini/shrikeshavcementsinfra/KU
https://www.equitymaster.com/timeless-reading/51/how-to-identify-multibagger-stocks
http://www.keshavcement.com/board-committees.php
