Have you ever come across a stock giving returns of over 3,000 per cent in 2 years? Among not so popular is a stock called Kesar Petroproducts, which soared 3,199 per cent in the past 2 years. The scrip soared from Rs 1.16 on July 28, 2014 to Rs 38.20 on July 27, 2016. It means an investment of Rs 1,000 in Kesar Petroproducts is now at Rs 32,987.91. During this period the market capitalisation of the company jumped from Rs 8.42 crore to Rs 369.29 crore. The stock surged the most on BSE in the past two years till July 27.
Shares of the company closed 2.62 per cent up at Rs 39.20 on July 28. The scrip is listed on the Bombay Stock Exchange only.
Here are 5 things you should know about Kesar Petroproducts
1) Business and Background: Kesar Petroproducts, a smallcap company, is operating in chemical sector. The comany was incorporated in the year 1990.
2) Promoters: Dinesh Sharma HUF, Rajkumar and Shankarlal Sharma are the promoters of Kesar Petroproducts.
3) Financials: In the past five years, net profit of the company jumped at CAGR of 313 per cent to Rs 12.10 crore for the financial year ended March 31, 2016 against net profit of Rs 0.01 crore in FY12. In FY13, FY14 and FY15 it reported net profit of Rs 0.19 crore, Rs 1.66 crore and Rs 5.10 crore, respectively. Proior to that the company was reporting losses year after year.
4) 52-week high and 52-week low: In the past one year, shares of company touched their 52-week high of Rs 66.70 on November 13, 2015 and 52-week low of Rs 16.55 on July 29, 2015.
5) Valuations: At present, shares of the company are trading at trailing twelve month price-to-earnings of 30.51 times against industy P/E of 25.96, indicating overvaluation of stocks.