Singer India Climbs 44% In 2 Sessions After RJ’s Rare Investments Buys Stake

Shares of Singer India have extended previous day’s gains and at the time of writing this copy at around 12:15 pm are quoting at Rs. 81.25 per share. At the day’s high, the scrip rallied to Rs. 82.95. The BSE listed scrip on Tuesday hit the 20% upper circuit and in 2 trading session has galloped by a whopping 43.89% from the Friday’s close of Rs. 57.65 apiece.
The sharp gains in the stock are triggered following the news of RARE Investments (backed by Rakesh Jhunjhunwala) buying stake into the firm. Rakesh Jhunjhunwala’s investment entity RARE Investments via the bulk deal purchased 42,50,000 shares of Singer India i.e. over 10% of total paid up capital of the company. The share as per the BSE bulk deal data have been purchased for Rs. 53.5 apiece.
In the June ended quarter of Fy23, the firm’s revenue from operations logged a gain on a YoY basis to Rs. 109.53 crore. Though the same suffered a sequential decline from Rs.124.78 crore in Q4Fy22 period. Net profit at the concern also logged an over 3 times increase from Rs. 0.28 crore in the same period last year to Rs. 0.96 crore in the June ended quarter of Fy23. Nevertheless, there was considerable decline in net profit on a sequential basis with Q4Fy22 profit at Rs. 2.38 crore.
The company is a debt free entity with debt/equity at 0. But its scrip is trading at rich valuations with TTM PE of 52.85 as against the sector’s PE of 16.44. Despite all this it is a multibagger stock with handsome return of 166% in 3 years. 1-month returns from the scrip is at 95%.
Singer India Limited is engaged in the manufacture of sewing machines, sewing machine heads and needles. It also makes domestic electro thermic appliances, domestic non-electric cooking & heating equipment, and other domestic appliances.