Multibagger hunt! This smallcap stock turned Rs 10,000 to Rs 9 lakh just 10 years
Sanmit Infra have offered hefty returns to investors in the last 10 years, surging as much as 9,400% over the decade.
Accordingly, if an investor had invested Rs 10,000 in the stock 10 years ago and stayed put, the investment would have swelled into nearly Rs 9.4 lakh, according to an analysis by ET Markets.
In the last five-year period, the shares have jumped nearly 6,000% and about 1050% in the past three years.
Sanmit Infra, a smallcap stock with a market cap of just over Rs 1,000 crore, is engaged in the business of distribution of petroleum in India. It is also into two other divisions — bio medical and infrastructure.
It has an EPS of 0.30 on a trailing twelve month (TTM) basis and the stock is currently trading at a PB of 39.11.
According to the latest shareholding pattern available with the exchanges, promoters own a majority of the stake at 72.33%, while the rest of 28% lies with public shareholders.
Among public shareholders, mutual funds and foreign investors have no stake.
Meanwhile, retail investors have a holding of 5.24% in the company.
For the first quarter ended June, Sanmit Infra's net profit fell to Rs 55 lakh from Rs 96 lakh a year ago. Revenue from operations too dropped 13% year-on-year to Rs 33 crore.
Technical outlook — What should traders do?
Analysts say the stock is under consolidation and that existing investors can hold, while fresh buying can be done on dips
“On the daily chart, we observe that the stock made a bottom at Rs 73 on September 7, 2023, and from there, it rallied up to Rs 89.
The stock is consolidating the prior gains — even the momentum indicator. RSI is taking support at 30 reading, which is a positive sign.
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