Multibagger alert: This BSE small cap company generated 12x returns for its shareholders in the last 2 years!

In February 2022, the company was acquired by Crompton Greaves Consumer Electricals at a consideration of Rs 2,076.63 crore.

Butterfly Gandhimathi Appliances Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last 2 years. During this period, the company’s share price has appreciated by 1200%, going from Rs 122.9 on 21 July 2020, to Rs 1611.40 on 15 July 2022.

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 13.1 lakh today.

In the recent quarter Q1FY23, on a standalone basis, the company’s net revenue increased 75.57% YoY to Rs 253.50 crore. The PBIDT (ex OI) jumped 228.56% YoY to Rs 25.76 crore. Similarly, the PAT climbed 1291% YoY to Rs 13.24 crore.

On the valuations front, the company is trading at a TTM PE of 101.4x as against the industry PE of 55x. In FY22, the company generated an ROE and ROCE of 7.05% and 14.3%, respectively.

Set up in 1986, Butterfly Gandhimathi Appliances Limited (BGMAL) is one of the largest manufacturers of domestic kitchen and electrical appliances in India. The product portfolio marketed under the ‘BUTTERFLY’ brand includes LPG Stoves, Mixer Grinders, Table Top Wet Grinders, Pressure Cookers, Stainless Steel Vacuum Flasks and Non-Stick Cookware.

In February 2022, BGMAL acquired Crompton Greaves Consumer Electricals Limited (CGCEL), a leader in Consumer Electrical Appliances, Lighting and Pumps. This acquisition was done at a total consideration of Rs 2,076.63 crore.

According to CGCEL this acquisition will add scale and extend the ‘Core Product Portfolio’ of Crompton’s current range of kitchen products and accelerate its long-term strategic goal of becoming a leading player in the small domestic appliances segment. This action is aligned with Crompton’s long-term vision of becoming a leading pan-India Kitchen Appliances player.

At 12.15 pm, the shares of Butterfly Gandhimathi Appliances Limited were trading at Rs 1578.45, a decrease of 2.04% from the previous closing of Rs 1611.40 on BSE. Their 52-week high and low stand at Rs 1670 and Rs 701.20, respectively.