scorecardresearchMax India surges 10% after Porinju Veliyath picks fresh stake via bulk deal

Max India surges 10% after Porinju Veliyath picks fresh stake via bulk deal

Updated: 16 Dec 2022, 01:25 PM IST
TL;DR.
The stock gained traction after hitting a 52-week low of Rs. 67 in June of this year. Since then, it has steadily increased and delivered a return of 62.54 percent to date.
For the September-ending quarter, the company posted a 50% drop in its standalone net profit at  <span class='webrupee'>₹</span>1.5 crore as against a net profit of  <span class='webrupee'>₹</span>3 crore in the corresponding quarter of last year.

For the September-ending quarter, the company posted a 50% drop in its standalone net profit at 1.5 crore as against a net profit of 3 crore in the corresponding quarter of last year.

Shares of Max India zoomed nearly 10 percent in the early trade on Friday to hit a new all-time high of 112.0 apiece after ace investor Porinju Veliyath bought 2.3 lakh shares in a bulk deal executed on December 15, 2022.

These shares were purchased for an average of 100.31 per share. Taking the purchase price into consideration, the Indian investor and fund manager has invested Rs. 2.30 crore in the small-cap stock.

Following the development, the stock opened strongly at 105.90 apiece as against a previous closing price of 101.75 and rose further to a record high of 112. At 12:00 p.m., the stock was trading at around 104.15, up by 3.05 percent, on the BSE.

The stock gained traction after hitting a 52-week low of Rs. 67 in June of this year. Since then, it has steadily increased and delivered a return of 62.54 percent to date.

Max India has a market capitalisation of 472.03 crore. The stock debuted on the exchanges on August 20, 2020, at a price of 80 and reached the lower circuit limit of 76 on the first day.

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Stock price chart of Max India

Max India Ltd. is a part of the leading Indian conglomerate Max Group.

The company operates across two lines of businesses: assisted care services, including care homes, care at home, and MedCare, and independent residences for seniors. This line of business caters to seniors over the age of 55 who need more immersive interventions in their daily lives due to medical or age-related issues, according to Trendlyne.

For the September quarter, the company posted a 50 percent drop in its standalone net profit at 1.5 crore as against a net profit of 3 crore in the corresponding quarter of last year.

The revenue from the operations came in flat at 8.3 crore during the quarter, while the operating expenses rose by 20.40 percent YoY. The EBITDA margin came in at 28.17 percent in Q2 FY23, a drop of nearly 1,195 basis points compared to 40.12 percent in a similar quarter last year.

The promoters own 51.1 percent of the shares in the company, while foreign portfolio investors and regular shareholders each own 7.6 percent and 41.3 percent, respectively.

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First Published: 16 Dec 2022, 01:25 PM IST