Vijay Kedia Gains Rs. 6 Cr in Small-cap Multibagger with 287% PAT Growth

The day was alive with a buzz of excitement, as history was being made on multiple fronts. From the roaring cheers of cricket fans at the Eden Gardens stadium to the frenzied activity on the stock market floor, there was no denying that Thursday was a day to remember. 

The IPL match between Kolkata Knight Riders and Rajasthan Royals was already a highly anticipated event but what happened next took everyone by surprise. Yashasvi Jaiswal, a rising star in the cricketing world, delivered a performance that will be etched in the annals of IPL history forever. With a breathtaking display of skill and speed, Jaiswal smashed his way to the fastest half-century ever scored in the league. The crowd erupted in a frenzy of cheers and applause as Jaiswal raised his bat in triumph, etching his name into the record books. 

But that wasn’t the only record being broken that day. Over on the stock market floor, a pharmaceutical manufacturer was quietly crossing several significant milestones, drawing attention from market participants. With its cutting-edge services in active pharmaceutical ingredients (APIs), complex intermediates and custom manufacturing solutions, the company had been making waves in the industry for some time. But on this fateful Thursday, it reached new heights, shattering all previous expectations and sending shockwaves through the market. 

The company we are talking about is Neuland Laboratories Ltd. The stock of Neuland Laboratories was locked at upper circuit limit of day of 20% at Rs 2538.30, this was also, the 52-week high registered by the stock.  

In Q4FY23, company reported total income of Rs 415.1 crore up by 61.8% YoY led by growth in Specialty and CMS segment. EBTIDA witnessed a staggering jump of 224.8% YoY to Rs 127.8 crore and EBITDA margin for Q4FY23 stood at 30.8% increased by 1550 bps YoY. Profit after tax for Q4FY23 jumped 287.2% YoY to Rs 84.5 crore. Net debt stood at Rs 63 crore as on Q4FY23 end compared to Rs 212 crore as on Q4FY22 end and Rs 72 crore as on Q3FY23 end.  

For FY23, total income for FY23 witnessed a growth of 26% YoY to Rs 1200.9 crore. EBITDA for FY23 stood at Rs 281.1 crore, up by 94.8% YoY and EBITDA margin for FY23 at 23.4 firmed by 830 bps YoY due to a better business mix. Profit after tax surged 156.7% YoY to Rs 163.1 crore.  

Commenting on the performance Mr. Sucheth Davuluri, Vice-Chairman and Chief Executive Officer of the Company said, “We crossed several significant milestones in FY23 with business driven by ongoing growth in the high margin Specialty and CMS business. The performance of this fiscal reflects the various initiatives we have taken in line with our strategy over the last few years, playing out now. We believe that this puts us in a strong position as we look to consolidate the healthy momentum going forward.” 

Talking about price performance of the stock, the stock has advanced 79.22% in the last three months, while in the last one year the stock is up by a jaw dropping 139% and in the last three years the stock has delivered returns of more than 500%. This stock has been a multibagger stock for the long-term shareholders.  

Now, here comes an interesting insight about the stock, ace investor Mukul Mahavir Agarwal and Kedia Securities Private Ltd which is headed by Vijay Kedia holds 3.12% and 1.17% in the company. Kedia Securities Private Ltd holds about 150,000 shares and with a single day jump of Rs 423, ace investor Vijay Kedia earned a whopping 6.34 crore! 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations.