Multibagger stocks: Investing in penny stocks is quite risky but high risk investors who understand the difference between price and value prefer to invest in such low liquid stocks as well. They believe that there is no harm in investing in a penny stock provided it holds well on the parameter of ‘margin of safety.’ Majority of market magnets believe that if a company’s intrinsic value is higher than its stock price, then irrespective of small-cap, large-cap or penny stock, one can invest in such stocks. However, they also remind that after investing in a stock, one should hold a stock as long as one can because patience is one of the most important virtues for a value investor. Sindhu Trade Links Ltd shares are glaring example of it.
This mid-cap stock is one of the multibagger stocks that have been giving stellar return to its investors for years. This mid-cap stock is one of the potential multibagger stocks for 2022 as it has already delivered more than 90 per cent return to its shareholders. Around 6 months ago, this stock was one of the penny stocks as its price was around ₹10 apiece levels, but there has been sharp upside bounce in the stock in last one year that helped it enter into the list of multibagger stocks in 2021 as well. In near 5 years, this stock has surged from ₹1.69 (close price on 17th February 2017 on BSE) to ₹139.25 (close price on 11 February 2022 on BSE) apiece levels, logging around 8100 per cent rise in this period.
Sindhu Trade Links Ltd share price history
In last one month, this multibagger stock has risen from ₹87.81 to ₹239.25 levels, logging around 60 per cent raise in this period. In year-to-date (YTD) time, this mid-cap stock has shot up from ₹72.84 to ₹239.25 apiece levels, clocking more than 90 per cent rise in 2022. In last 6 months, this multibagger penny stock has risen from 9.70 apiece levels to ₹139.25 per share levels, appreciating around 1,350 per cent in this small time period.
Likewise, in last one year, this multibagger penny stock has surged form ₹6.62 to ₹239.25 apiece levels, clocking more than 2000 per cent rise in this Covid-hit period. However, in last near 5 years, this stock has appreciated form ₹1.69 to ₹239.25 apiece levels on BSE, logging around 82 times rise in this period.
Impact on investment
Taking cue from Sindhu Trade Links Ltd share price history, if an investor had invested ₹1 lakh in this multibagger stock, one month ago, its ₹1 lakh would have turned to ₹1.60 lakh today whereas it would have turned to ₹1.90 in YTD time. In an investor had invested ₹1 lakh in this multibagger penny stock 6 months ago, its ₹1 lakh would have turned to ₹14.50 lakh today. Likewise, if an investor had invested ₹1 lakh in this penny stock one year ago, its ₹1 lakh would have turned to ₹21 lakh today.
Similarly, if an investor had invested ₹1 lakh in this stock 5 years ago, buying one share at ₹1.69 levels, and it had remained invested in this scrip throughout this period, its ₹1 lakh would have turned to more than ₹82 lakh today.
Sindhu Trade Links Ltd shares: What fundamentals signal
In its Q3 FY22 period, company has reported 42.47 per cent increase in consolidated net revenue on quarter-on-quarter (QoQ) basis. On year-on-year (YoY) basis, it has reported 36.24 per cent increase in its consolidated net revenue. Its EBIDTA has surged near 303 per cent QoQ and near 160 per cent YoY. It net profit after tax (PAT), has grown near 200 per cent QoQ whereas this number stands at 160 per cent on YoY basis.
The company is planning to list at NSE in near future as well. In its latest exchange communication with BSE, it informed about its plan citing, “The Company’s management in order to enhance the visibility and liquidity in the company’s scrip decided to seek National Stock Exchange of India Limited (NSE) listing in the greater interest of the investors after taking into consideration that the company satisfies eligibility criteria of NSE Direct Listing (Mainboard).”
Share split approval
The Board of Directors of the logistics company has recently approved subdivision of shares as well. The company management informed about the sub division of shares to the BSE citing, “Pursuant to members approval, nominal value of the equity share of the Company has been subdivided from Rs. 10/- each to Re. 1/- each with effect from February 4’2022.”
Reduction in bank debt
In terms of company’s Management decision to become debt-free, the Company has reduced its bank debt by ₹1041.5 million, almost 1/3rd of its peak bank-debts in last 15-18 months. Company bank debt reduction program started during the previous financial year itself, wherein businesses across the word were considerably disturbed by outburst of Covid-19 pandemic, and is continuing thereafter with tenacity to reduce bank-debt every quarter with an aim to become debt free by 2023.
During the current financial year, ₹78.47 crore bank debts have been repaid by the Company in the first nine months period.
More info about Sindhu Trade Links Ltd shares
The BSE listed stock is near to its life-time high of ₹147.55 whereas its 52-week low is ₹5.32 apiece levels. Its current market capital is ₹7,157 crore and its book value per share is 13.23. Its current trade volume is 2,60,815, which is much higher than its 20 days average volume of 1,44,443.
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