Multibagger Pharma stock attracts Ace investor’s attention; Stock up 25% in 5 days

As per the block deals data available on BSE, Ace investor Sunil Singhania-owned company Abakkus acquired a stake in ‘TTK Healthcare’ via open market transactions on 24th March. The company bought around 2.46 lakh equity shares in total with the Asset management firm ‘Abakkus Asset Manager LLP’ buying around 1.31 lakh equity shares at an average price of Rs 910 apiece while Abakkus Diversified Alpha Fund purchasing around 1.15 lakh shares at the same average price.

However, investor MCap India Fund, managed by Gurgaon-based private equity firm MCap Fund advisors, was the selling party in this block deal, offloading the matching amount of shares bought by Abakkus.

The company’s stock opened its trading hour at a price of Rs 1,016 and closed at a price of Rs 1,070. The stock is up around 5 percent as compared to the previous closing price of Rs 1,022.70. In just five days, the stock has seen a whooping 25 percent increase in price from Rs 866 to current levels.

Moving further ahead with a time horizon of two years, the stock has been able to deliver Multibagger returns of around 120 percent to its stakeholders. It means that if someone would have invested Rs 1,00,000 in the stock then it would have converted to Rs 2,20,000 within two years.

TTK Healthcare (NS: TTKH ) Ltd is an Indian pharmaceutical company with operating segments including Animal Welfare, Consumer Products, Medical Devices, Protective Devices, and Others. The Group was among the first ones to introduce western goods in India along with building up a vast network of distributors. In fact, the Group has been able to pioneer the organized

distribution in India. Over the years, it has built powerful brands of its own gaining not just a pan-Indian but a global market as well for many of its products.

Coming onto the financials, revenues as well as net profits of the company have witnessed an increase on a QoQ basis. Revenues moved from Rs 169.79 crores in Q2 to Rs 182.56 crores in Q3. Moreover, the net profits saw a movement from Rs 7.9 crores in Q2 to Rs 12 crores in Q3.

The basic profitability ratios pertaining to the returns on equity and returns on capital amount been employed have seen a contrasting movement. ROE moved down from 13.76 percent in FY20-21 to 6.02 percent in FY21-22. On the other hand, the ROCE figures showed a slight up movement from 8.38 percent in FY20-21 to 8.59 percent in FY21-22.

The company has been able to maintain a constant debt to equity ratio of 0.06 over the past two financial years.

Written by Amit Madnani

The post Multibagger Pharma stock attracts Ace investor’s attention; Stock up 25% in 5 days appeared first on Trade Brains.

Read More