Tilaknagar Industries: A small-cap success story with over 100% returns in a year

Tilaknagar Industries Limited has proven to be a small-cap gem, delivering remarkable returns to its investors over the past year. Starting from Rs 99.90 on October 04, 2022, the company’s share price has surged to Rs 204.85 on October 04, 2023, marking an impressive 100% increase within a one-year holding period.

For those who invested Rs 1 lakh in this company’s shares a year ago, their investment would have doubled to Rs 2.00 lakh today.

In addition to this outstanding growth, the company has also made significant strides in reducing its gross debt. From Rs 1,200 crore in March 2019, the debt has been trimmed down to Rs 239 crore as of June 2023. Tilaknagar Industries is aiming to further reduce its net debt to below Rs 100 crore this year and ultimately achieve a net debt-free status by FY25. The company’s volume growth has also been commendable, with Mansion House Brandy and Courrier Napoleon Brandy leading the way.

The first quarter of FY24 has been exceptionally strong for Tilaknagar Industries, with net sales witnessing an impressive growth of 33.18% to reach Rs 639.98 crore, compared to Rs 480.52 crore in the same quarter last year. Operating profit has also seen a substantial increase of 76.77%. Furthermore, the net profit for the quarter has surged by a staggering 2385.14% to Rs 25.75 crore, compared to Rs 1.58 crore in the corresponding quarter last year.

Tilaknagar Industries Limited (TI) proudly stands as one of India’s oldest and foremost manufacturers of Indian Made Foreign Liquor (IMFL), primarily dominating the southern and western regions of India. The company caters to a wide range of price points, ensuring its products suit diverse pockets.

As of today, the stock opened at Rs 206, with a high and low of Rs 208.95 and Rs 202.10, respectively. The trading session concluded with the stock at Rs 203.30, experiencing a modest 0.83% decline. The stock has shown significant strength over the past year, with a 52-week high of Rs 224.95 and a 52-week low of Rs 90.65. The company boasts an ROCE of 15.5% and an ROE of 23.9%, with a market capitalization of Rs 3,898 crore.

Given its impressive growth trajectory, investors are advised to keep a keen eye on this stock for potential opportunities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.