This Dolly Khanna stock turned into a multibagger in three years

Shares of Rama Phosphates have rallied 329% in the last three years. The micro cap stock, which closed at Rs 79.75 on February 22, 2019 rose to a high of Rs 342.60 on the BSE today. An amount of Rs 1 lakh invested in the shares of Rama Phosphates three years ago would have turned into Rs 4.29 lakh today. In comparison, Sensex has risen 60.37 per cent during the period.

Rama Phosphates shares touched an intraday high of Rs 345, rising 4.96% on BSE. The stock has gained after 2 days of consecutive fall.

Rama Phosphates shares are trading higher than 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.

The stock has gained 11.08% since the beginning of this year. The share has lost 7.51% in a month and declined 0.81% in one week.

Total 9226 shares of the firm changed hands amounting to a turnover of Rs 31.87 lakh on BSE. Market cap of the firm stood at Rs 608.79 crore on BSE.

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The stock hit a 52-week high of Rs 505.05 on July 23, 2021 and a 52-week low of Rs 110 on March 19, 2021.

Five promoters held 75 per cent stake in the firm and 15,072 public shareholders owned 25 per cent for quarter ended December 2021.

Of these, 14,440 public shareholders held 13.5% stake with capital up to Rs 2 lakh. Only 11 shareholders with 6.32% stake held capital above Rs 2 lakh for the quarter ended December 2021.

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Five financial institutions held 5,680 shares in Q3 of the current fiscal. Ace investor Dolly Khanna owned 2.29% stake or 4.04 lakh shares of the firm at the end of Q3.

Rama Phosphates has outperformed its peers in terms of stock market returns in the last three years. Shares of SPIC have gained 151% and stock of Nagarjuna Fertilisers has gained 81.65% in the last three years. Stock  of another competitor Zuari Agro Chemicals has lost 30.79% during the period.

The stellar rally in the stock of Rama Phosphates does not fully reflect the financial performance of the firm in the last three years.

In the December quarter, the firm reported a 87% rise in net profit to Rs 21.48 crore against 11.47 crore profit in the corresponding quarter of previous fiscal. Sales rose 58.57% to Rs 240.10 crore in the last quarter against Rs 151.42 crore in the December quarter of 2020.

Operating profit rose 102.76% to Rs 32.36 crore for the quarter ended December against Rs 15.96 crore in the corresponding quarter of the previous fiscal. On a quarter-on-quarter basis, the firm reported a 5.46% fall in net profit from Rs 21.48 crore in the September 2021 quarter.

Sales fell 3.24% from Rs 248.14 crore in Q2 of the current fiscal.

On an annual basis, profit rose 138.31% to Rs 42.11 crore for the fiscal ended March 2021 against Rs 17.67 crore for the fiscal ended 2020. For the fiscal ended 2019, net profit stood at Rs 19.39 crore.

Sales climbed 29.45% to Rs 580 crore in the last fiscal against Rs 448.43 crore for the fiscal ended March 2020. For the fiscal ended 2019, sales stood at Rs 606 crore.

Rama Phosphates is an India-based fertiliser manufacturing company. The company's principal products/services include single super phosphate, sulphuric acid and oleum, nitrogen, phosphorous, and potassium (NPK), de-oiled cake and soya oil. Its segments include fertilisers and chemicals, and soya/agri. It is in the business of single super phosphate (SSP) manufacturing and also industrial chemicals. It manufactures NPK mixed fertilizer of different grades.

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