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This Dolly Khanna stock turned Rs 1 lakh into Rs 7 lakh in two years

This Dolly Khanna stock turned Rs 1 lakh into Rs 7 lakh in two years

An amount of Rs 1 lakh invested in the small cap stock two years ago would have turned into Rs 7.28 lakh today.

Ace investor Dolly Khanna owned 1.44% stake or 2.56 lakh shares of the firm at the end of Q3. Ace investor Dolly Khanna owned 1.44% stake or 2.56 lakh shares of the firm at the end of Q3.

Shares of Butterfly Gandhimathi Appliances have rallied 628 per cent in the last two years. The small cap stock, which closed at Rs 192.75 on February 24, 2020, rose to a high of Rs 1,404 on the BSE today. Ace investor Dolly Khanna owned 1.44 per cent stake or 2.56 lakh shares of the firm at the end of Q3.

An amount of Rs 1 lakh invested in the shares of Butterfly Gandhimathi Appliances two years ago would have turned into Rs 7.28 lakh today. In comparison, Sensex has risen 38 per cent during the period.

Butterfly Gandhimathi shares came close to their 52 week high today, rising 1.51 per cent to Rs 1,404, on BSE.  The stock hit its 52-week high of Rs 1,419 on February 23, 2022 and touched its 52-week low of Rs 478 on April 5, 2021.

Butterfly Gandhimathi stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 20.64 per cent since the beginning of this year and risen 144 per cent in one year. The share has climbed 16.93 per cent in a month and risen 8.59 per cent in one week.

Total 2,683 shares of the firm changed hands amounting to a turnover of Rs 37.37 lakh on BSE. Market cap of the firm stood at Rs 2,485 crore on BSE.

18 promoters held 64.78 per cent stake in the firm and 26,152 public shareholders owned 35.22 per cent for the quarter ended December 2021.

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Of these, 25,491 public shareholders held 15.44 per cent stake with capital up to Rs 2 lakh. Only 15 shareholders with 5.24 per cent stake held capital above Rs 2 lakh for the quarter ended December 2021. Five mutual funds held 9.53 per cent stake or 17.03 lakh shares in Q3 of the current fiscal.

Butterfly Gandhimathi Appliances has outperformed its peers in terms of stock market returns in the last two years. Shares of TTK Prestige have gained 34.7 per cent and stock of IFB Industries has gained 80.77 per cent in the last two years. Stock of another competitor Singer India has climbed 77.27 per cent during the period.

The stellar rally in the stock of Butterfly Gandhimathi Appliances does not fully reflect the financial performance of the firm in the last two years.

In the December quarter, the firm reported a 51.44 per cent fall in net profit to Rs 9.09 crore against Rs 18.72 crore profit in the corresponding quarter of previous fiscal.

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Sales fell 13.23 per cent to Rs 258.49 crore in the last quarter against Rs 297.90 crore in the December quarter of 2020.

Operating profit fell 40.85 per cent to Rs 21.21 crore for the quarter ended December against Rs 35.86 crore in the corresponding quarter of the previous fiscal.

On a quarter-on-quarter basis, the firm reported a 64.31 per cent fall in net profit from Rs 25.47 crore in the September 2021 quarter. Sales declined 35.88 per cent from Rs 403.12 crore in Q2 of the current fiscal.

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However, the earnings performance of the firm looks promising on an annual basis.

Profit rose 808 per cent to Rs 36.16 crore for the fiscal ended March 2021 against Rs 3.98 crore for the fiscal ended 2020. For the fiscal ended 2019, net profit stood at Rs 9.58 crore.

Sales climbed 28.13 per cent to Rs 869.64 crore in the last fiscal against Rs 678.70 crore for the fiscal ended March 2020. For the fiscal ended 2019, sales stood at Rs 652 crore.

On February 23 this year,  Crompton Greaves said it has signed definitive agreements to acquire up to 55 per cent stake in Butterfly Gandhimathi Appliances at Rs 1,403 per equity share.

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The transaction was worth Rs 1,379.68 crore. The firm will also buy certain Butterfly trademarks in allied and cognate classes from promoter group entities for a consideration of Rs 30.38 crore.

Butterfly is among the top three pan-India kitchen and small domestic appliances players. Its leading kitchen and small domestic appliances portfolio includes mixer grinders, table top wet grinders, pressure cookers, stainless steel vacuum flasks, LPG stoves and non-stick cookware.

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