Narmada Gelatin(BSE Code 526739)

A knowledgeable HNI (High Networth Investor) who is always in search of multi-baggers in small cap segment is bullish on Narmada Gelatin and has by now accumulated a lage quantity of these shares. Headquartered in Jabalpur (Madhya Pradesh), Narmada Gelatin is a pioneer in the production of ossein and gelatin has by now established undisputed leadership in the gelatin market.

The small cap company with market cap Rs. 210 crore is doing quite well in its financials. During the Q2 FY2023 it has grossed sales of Rs. 46.38 crore, indicating a 32 per cent spurt over Rs. 35.12 crore achieved in the corresponding quarter a year ago. And the profit at net levl skyrocketed by 131 per cent – from Rs. 1.23 crore to Rs. 2.84 crore. Enthused by the robust performance the board of directors have proposed a fantastic special interim dividend of Rs. 100 per share of the face value of Rs. 10. The company has now become a darling of dividend-loving investors on account of regular high dividends and bumper dividend yield (this time 28.57 per cent) on the current market price.

Needless to say, the share price is continuously going up and has by now reched Rs. 350 , reflecting a multibagger return of 102.60 per cent over the last year. On 20-12-2021, the stock had touched its 52-week low of Rs. 160.

Special dividend is one-time dividend paid by a company to its shareholders. It is also known as extra dividend. It is distinct from the regular dividend cycle and typically exceeds a company’s typical annual dividend payout.

(CMP Rs. 296.80, 52 week H/L Rs. 567/163, BV Rs. 238.40, FV Rs. 10)

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KPI Green Energy(BSE code 542323)

A research analyst working with a leading brokerage house is bullish on KPI Green Energy, a Surat-based company, engaged in developing, building, owning operating and maintaining solar power plants as an independent power producer (IPP) and captive power producers (CPP) both under the brand name Solarism. The small cap company with a market capitalisation of Rs. 1650 crore is doing very well. During the last seven years, its sales turnover has advanced from Rs. 27 crore in the fiscal 2016 to Rs. 219 crore in the fiscal 2022 with operating profit shooting up seven times – from Rs. 15 crore to Rs. 106 crore and the profit at net level inching up from Rs. 8 crore to Rs. 45 crore. Enthused by the robust performance the board of directors have proposed a liberal bonus issue in the ratio of 1:1. Needless to say the share price has been bid up to Rs. 874.

According to the research analyst, prospect for the company going ahead are highly promising. The company is developing solar power projects aggregating 24.90 MW from various captive customers under the captive power producer (CPP) segment. The record date for the bonus issue eligibility has been fixed at January 18, 2022.

The company is doing well in the current year also. During the Q2 FY2023, its revenues jumped 178 per cent – to Rs. 160.14 crore and the profit at net level spurted by 73 per cent to Rs. 21.16 crore. During the quarter the earning per share shot up 91.57 per cent to Rs. 36.75. The return on equity (ROE) which indicates the efficiency of equity capital in running the business moved up to 13.82 per cent and the company declared a dividend of Rs. 3.05 per share on face value of Rs. 10. Prospects for the second half of the fiscal 2023 are also rated very positive.

(CMP Rs. 861.05, 52 week H/L Rs. 975/362, BV Rs. 106.70, FV Rs. 10)

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Indian Railway Finance Corporation(BSE Code 543257)

A septuagerian stock broker based in Chennai recommends his clients to invest in Indian Railway Finance Corporation which had entered the capital market over a year ago (January 2022) with a price band of Rs. 25.26.

The company has been doing very well on the financial front. During the last 11 years, its revenues have expanded from Rs. 4642 crore in the fiscal 2012 to Rs. 20,299 crore in the fiscal 2022 with operating profit spurting more than four times from Rs. 4633 crore to Rs. 20,177 crore and the profit at net level shooting up over 13 times from Rs. 481 crore to Rs. 6090 crore during this period.

The company finances the Indian railways. The cumulative funding to the Indian railway sector IRFC has by now crossed Rs. 5,05 lakh crore mark by the end of the Q2 FY2023.

Prospects ahead are all the more promising. IRFC is a dedicated market borrowing arm of the Indian railways and is owned by the Government of India acting through the Ministry of Railway. Its primary business is financing the acquisition of rolling stock assets and project assets of the railways and lending to other entities under the ministry.

Business prospects for the company are highly encouraging as Indian railways have decided to roll out projects worth Rs. 90,000 crore in coming months in order to remove bottlenecks in the movement of freight.

Again the Union Rail Minister Mr. Ashwini Vaishnav has announced that the railway ministry has planned to roll out 75 Vande Bharat trains till 2024.

(CMP Rs. 32.80, 52 week H/L Rs. 38/10, BV Rs. 33.30, FV Rs. 10)

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