Big Bull Portfolio Share: This stock invested by Jhunjhunwala touched the upper circuit on Monday, know what is so special about it?
Big Jump by Big Bull Supported Stock: In the Indian stock market, a stock invested by veteran investor Rakesh Jhunjhunwala, popularly known as Bill Bull, touched the upper circuit by making a big jump today. This stock, which jumped 20 percent in a single day on Monday, January 17, belongs to footwear retail chain Metro Brands Limited (MBL). This is the same company, which was earlier known as Metro Shoes.
IPO was listed with a huge drop in December
Interestingly, on December 22, the company’s IPO was listed with a huge drop of 13 per cent over its issue price. Many experts had said at that time also that the company is expected to do well in the long term and any major fall should be considered as an opportunity to invest in it for the long term. On Monday, the company’s stock touched a price of Rs 608.20 per share on the BSE during intraday trading, which is about 22 percent higher than the issue price of Rs 500 per share of its IPO.
14.42% share with Rekha Jhunjhanwala
According to BSE data, on December 21, 14.42 percent of the shares of the company were with Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala. This stock has not only covered the loss incurred at the time of listing in one stroke, but has also earned a good return on it.
What is the main reason for the rise in shares
This rise in the stock of Metro Brands Limited has been seen after the first quarter results released after the listing of the company’s IPO. Obviously, the biggest reason for this boom is the company’s excellent quarterly results. The company has registered a tremendous increase in its profits during the quarter (Q3FY22) ended 31 December 2021. During this period, the company has earned a consolidated net profit of Rs 102 crore, which is 53.2 percent higher than the same period last year. Along with this, the company’s total revenue from operations has also increased by 59 percent to Rs 484 crore on an annual basis (YoY). The EBITDA margin of the company has also increased from 32.7 per cent to 34.9 per cent during the same period. The company has also opened 39 new stores across the country during the quarter ended December 2021, giving hope to continue its strong performance in future as well. According to the company, a tremendous growth of 69 percent has also been seen in its e-commerce sales.
Not much impact of increased GST rates: Metro Brands
The government has increased the GST rates from 5 percent to 12 percent on slippers and shoes priced below Rs 1000 from January 1, 2022. But Metro Brands says that the increase in GST rates will not have much impact on its business, as only 15 per cent of its products are priced below Rs 1,000.