Madhya Bharat Agro Products shareholders were ecstatic with its stock performance in the current year so far. The stock began its upward rally at the start of the year and has maintained the same momentum to date, delivering a fabulous return of 526.44%, climbing from ₹87.63 apiece to the current level of ₹548.95.
Maintaining its bullish trend, the stock rose 4.20% to ₹548.95 in Monday's intra-day and is just 1.97% away from its record-high of ₹560.
The stock recorded gains in 10 of the previous 11 months, with May posting the largest gain of 38.93%, followed by July's 20.51%. So far in the current month, the stock has risen by 12.39%.
Over the last three years, the stock has risen from ₹36.23 to the current market price of ₹548.95, providing shareholders with an outstanding return of 1,415%.
Madhya Bharat is a small-cap stock with a market cap of 2,405 crore. The company was owned by the Oswal Group, and it engages in the business of producing fertilisers and chemicals. The company sells its products under the "Annadata" brand.
On the fundamental side too, the company's performance is quite impressive; for the last eight quarters, the net profit of the company has been steadily growing. In the recent September quarter, the company reported its highest-ever net profit of ₹32.6 crore, an increase of 250% YoY.
The revenue from operations jumped nearly three-fold during the quarter to ₹249.2 crore from ₹86.4 crore in the corresponding quarter of the last fiscal.
The company has a low dividend payout ratio of 1.92%. This implies that the management is using most of the profits to expand the company.
However, the stock's earnings per share (EPS) grew an average of 14% each year in the last three years, while the company's share price has increased by 471% per year, putting it well ahead of earnings growth.
Further, the stock has a price-to-earnings ratio of 23.89x, compared to the peer average of 14.86x, and it has a price-to-book value of 11.24x.
Recently, the company began producing and marketing DAP/NPK complex fertilisers at its new manufacturing plant in Sagar, Madhya Pradesh, which has a capacity of 1,20,000 metric tonnes.
In addition, the business inked an MOU with Madhya Pradesh State Mining Corporation Limited for the delivery of MTPA-mined, low-grade rock phosphate from its Tigora and Mardeora mines for 20 years, owing to an assured supply of raw materials at lower transportation costs, according to media reports.
The promoters own 74.4% percent of the shares in the company, while Regular shareholders own 25.6 percent.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.