Vijay Kedia & Dolly Khanna-owned multibagger stock rises 26% in two days, Here's why

Multibagger stock Talbros Automotive Components, which is owned by some of the celebrity investors of Dalal Street, has been rallying smartly for the straight two sessions. The stock, which gained 16 per cent on Tuesday, surged another 13 per cent on Wednesday after the corporate announcements.

Talbros Automotive Components reported a strong performance in the June 2023 quarter and its board also approved the sub-division of the equity shares of the company.

The auto components maker’s consolidated net profit jumped 46.34 per cent on a year-on-year (YoY) basis to Rs 17.4 crore in the June quarter from Rs 11.9 crore in the same period last year. Its total income increased by 20 percent to Rs 185.3 crore in the June-ended quarter compared to Rs 154.67 crore in the corresponding quarter of last year.

The company management also approved the sub-division of equity shares in 1:5 ratio. It means that one equity share with a face value of Rs 10 each will be split into five equity shares with a face value of Rs 2 each, subject to the approval of shareholders of the company in the ensuing AGM.

Shares of Talbros Automotive Components surged more than 13 per cent to Rs 1,104.95, hitting its new 52-week highs. The scrip had settled at Rs 974.95 on Tuesday, rising 16 per cent for the day. The stock has gained as much as 26 per cent in the last two sessions and the company commanded a total market capitalization of more than Rs 1,350 crore.

Talbros Automotive Components has delivered multibagger returns to the investors. The stock has rallied about 130 per cent in the last six months, while the stock has surged more than 190 per cent from its 52-week low at Rs 380.10, hit in March 2023. The stock is owned by seasoned investors like Dolly Khanna and Vijay Kedia.

Dolly Khanna owned 1,85,715 equity shares, or 1.50 per cent, stake in Talbros Automotive, while Vijay Kedia's holding stood at 1,50,000 equity shares, or 1.22 per cent, stake in the company as of the quarter ended on June 30, 2023.

The companies take the stock split route to boost the liquidity of the stock in the market and the stock price will be adjusted as per the split ratio. The record date for the stock split will be declared by the company after its shareholders approve the same, the company informed the bourses.

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