With 13,500% returns, this stock turned into a multibagger in a year

Shares of SEL Manufacturing Company have rallied 13,516 per cent in the last one year. The stock, which closed at Rs 1.37 on March 2, 2021 rose to a high of Rs 186.55 on the BSE on March 2. An amount of Rs 1 lakh invested in the shares of SEL Manufacturing one year ago would have turned into Rs 1.3 crore on March 2. In comparison, Sensex rose 10.28 per cent during the period. The stock closed 4.98per cent higher at Rs 186.55 on March 2. The share gained 33.92 per cent in the last six days.

SEL Manufacturing stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. SEL Manufacturing share has gained 395.48 per cent since the beginning of this year. The stock has zoomed 128 per cent in a month and risen 21.49% in one week.

Market cap of the firm stood at Rs 618 crore on BSE. The stock hit a 52-week low of Rs 1.14 on March 8, 2021.

Eight promoters held 75.27 per cent stake in the firm and 16,521 public shareholders owned 24.73 per cent for the quarter ended December 2021. Of these, 15,546 public shareholders held 0.46 per cent stake with capital up to Rs 2 lakh. Three foreign portfolio investors (FPIs) held 42,178 shares in Q3 of the current fiscal.

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One should be cautious while putting money into this stock. The firm is a loss making one. Of the last eight fiscals, it has logged losses in seven. Besides, the turnover in the stock is also very thin. In early trade, two shares changed hands today. However, the stock rose 4.99 per cent to Rs 195.85 on BSE.

In the December 2021 quarter, net loss narrowed by 42.69 per cent to Rs 28.30 crore against Rs 49.38 crore in the corresponding quarter of previous fiscal.

With 13,500% returns, this stock turned into a multibagger in a year

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Sales rose 45.63 per cent to Rs 117.29 crore in the last quarter against Rs 80.54 crore in the December quarter of 2020. Operating profit rose 113.47 per cent to Rs 3.41 crore for the quarter ended December against a loss of Rs 25.32 crore in the corresponding quarter of the previous fiscal.

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On a quarter-on-quarter basis, the firm's net loss narrowed by 24 per cent from Rs 37.23 crore loss in the September 2021 quarter.

Sales climbed 9.42 per cent from Rs 107.19 crore in Q2 of the current fiscal.

On an annual basis, net profit rose 526 per cent to Rs 2,507 crore for the fiscal ended March 2021 against a loss of Rs 587.37 crore for the fiscal ended 2020. In the seven preceding fiscals to March 2021 fiscal, the firm has logged losses. Sales fell to Rs 190.38 crore in the last fiscal against Rs 352.62 crore for the fiscal ended March 2020.

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SEL Manufacturing Company is a vertically integrated multi-product textile company. The company is engaged in the manufacturing, processing and trading of yarn, fabric, readymade garments and towels. It offers terry towels, such as beach towels, bath towels, kitchen towels and Christmas towels.

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